Iran Strikes Ships, Sets UAE Oil Port Ablaze Amid Hormuz Escalation

Iran hit several ships in the Strait of Hormuz on Monday and set a UAE oil port ablaze, as President Donald Trump’s attempt to use the U.S. Navy to free up shipping provoked the war’s biggest escalation since a ceasefire was declared four weeks ago.

Trump’s new mission “Project Freedom,” which he announced on social media overnight to release ships stuck in ‌the strait, was the first apparent attempt to make use of naval power to unblock the world’s most important energy shipping route.

But at least in the initial hours on Monday, the gamble appeared to have backfired, bringing no surge of merchant shipping through the strait while provoking a show of force from Iran, which had long threatened to respond to any escalation with new attacks on its neighbours.

The U.S. military said two U.S. merchant ships had made it through the strait, without saying when. Iran denied any such crossings had taken place.

The commander of U.S. forces in the region said his fleet had destroyed six small Iranian boats, which Iran also denied. Admiral Brad Cooper said he “strongly advised” Iranian forces to keep clear of U.S. military assets carrying out the mission.

Iranian authorities, for their part, released a map of what they said was an expanded sea area now under their control, which went far beyond the strait to include swathes of international waters, including long stretches of the United Arab Emirates’ coastline on either side ⁠of the strait.

South Korea reported one of its merchant ships had been hit by an explosion and fire inside the strait. The British maritime security agency UKMTO reported two ships had been hit off the coast of the UAE, and the Emirati oil company ADNOC said one of its empty oil tankers was hit by Iranian drones while trying to cross.

“Iran has taken some shots at unrelated Nations with respect to the Ship Movement, PROJECT FREEDOM, including a South Korean Cargo Ship. Perhaps it’s time for South Korea to come and join the mission!” Trump posted on social media on Monday.

After reported drone and missile attacks inside the UAE throughout the day, including one that caused a fire at an important oil port, the UAE said Iranian attacks marked a serious escalation and it reserved the right to respond.

Trump has struggled to find a solution to the disruption of international energy supplies caused by Iran’s blockade of the strait, which carried a fifth of global oil and liquefied natural gas before the war.

In the more than two months since Trump launched an air war against Iran alongside Israel, Tehran has largely blocked the strait to ships apart from its own. Since last month, the United States has imposed its own blockade of ships leaving and entering Iranian ports.

The warring sides issued contradictory statements on Monday about the initial impact of the new U.S. mission, and Reuters could not independently verify the full situation there.

But there was no immediate sign that large numbers of merchant ships were making new attempts to cross, and major shipping companies said they were likely to wait for an agreed end to hostilities ‌before trying to ⁠sail through.

In a post on X, U.S. Central Command said some of its Navy guided-missile destroyers were inside the Gulf supporting the operation, and that two U.S.-flagged merchant vessels had crossed the strait “and are safely headed on their journey.”.

It did not identify either the warships or the merchant vessels or say when any of those crossings had taken place.

Iran’s Revolutionary Guards said no commercial vessels had crossed the strait in the past few hours, and that U.S. claims to the contrary were false.

Earlier, Iran said it had fired on a U.S. warship approaching the strait, forcing it to turn around. An initial Iranian report had said a U.S. warship was struck, but Washington denied this and Iranian officials later described the fire as warning shots.

South Korea’s Foreign Ministry said there was a fire and an explosion onboard the Namu, a merchant ship operated by South Korean shipper HMM (011200.KS), opens new tab. Yonhap ⁠news agency reported that the government was checking intelligence indicating the vessel may have been attacked.

The UAE, meanwhile, reported a fire at an oil installation in its port of Fujairah following an Iranian drone attack. Fujairah lies beyond the strait, making it one of the few export routes for Middle East oil that does not require passing through it.

Oil prices jumped more than 5 per cent in volatile trade as news of the increased Iranian attacks emerged.

In his social media post announcing the new mission, Trump gave few details of what action the U.S. Navy would take to get ships ⁠through the strait.

“We have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business,” Trump wrote.

UAE Says Air Defences Engage Missiles, Drones As Flights Diverted

The United Arab Emirates said its air defences were engaging missile and drone threats on Monday evening as firefighters battled a blaze at a major oil industry zone following a drone attack which authorities said had originated from Iran.

The Gulf Arab state’s foreign ministry said in a statement that the attacks marked a serious escalation and posed a direct threat to the country’s security, adding that the UAE reserved its “full and legitimate ⁠right” to respond.

Multiple flights bound for the UAE diverted to Muscat in Oman, while other inbound aircraft circled over Saudi Arabia, according to flight tracking service Flightradar24, as the attacks caused widespread disruption to air traffic.

Iranian state media, citing a senior military official, said Iran had no plan to target the UAE, whose defence ministry said earlier on X that it had intercepted three Iranian missiles over its territorial waters and a fourth crashed into the sea.

The drone attacks shattered a period of relative calm in the region since a Pakistani-mediated ceasefire between Washington and Tehran took effect on April 8, pausing more than a month of intense fighting in the Gulf region.

Civil defence teams were deployed immediately to contain the blaze at the Fujairah Oil Industry Zone, the Fujairah Media Office said in a statement, adding that three ‌Indian citizens ⁠were moderately injured in the attack and taken to hospital.

By Monday evening, the ministry said air defence systems were actively engaging further missile and drone threats.

“All airports in the UAE are closed for the time (being),” the captain on one inbound flight to Dubai told passengers, adding that aircraft would be diverted to the Omani capital.

Iran’s Revolutionary Guards Navy issued a map it said showed an expansion of areas under Iranian control near the Strait of Hormuz, ⁠encompassing the UAE ports of Fujairah and Khorfakkan as well as the coast of the Umm Al Quwain emirate, Iranian news agencies reported.

During the period of intense conflict earlier this spring, the UAE said it had intercepted and destroyed thousands of drones and missiles.

UAE authorities on Monday issued mobile phone alerts in ⁠Dubai and Abu Dhabi warning of the possibility of missile attacks.

Monday’s strike was not the first time Fujairah’s energy infrastructure had been targeted. A drone attack on March 14 had previously hit the Port of Fujairah, triggering fires and the suspension of some oil-loading operations.

Fujairah has ⁠been critical to UAE oil exports during the Iran war as it sits at the end of the Abu Dhabi Crude Oil Pipeline, which carries crude from inland fields to the Gulf of Oman, bypassing the Strait of Hormuz.

This has allowed the UAE to continue shipping oil to global markets even as the waterway remained under threat.