UAE Reports Iranian Drone Strike on Key Oil Port as Tensions Escalate in Strait of Hormuz

A fragile ceasefire between the United States and Iran appeared to deteriorate sharply Monday after the United Arab Emirates reported missile and drone attacks it attributed to Iran, including a strike that triggered a large fire at the key oil port of Fujairah.

UAE authorities said air defenses intercepted multiple projectiles, while a drone strike hit Fujairah, injuring three people and igniting a blaze at the strategic facility. The country's foreign ministry also reported that a tanker linked to its state oil company had been struck in the Strait of Hormuz, calling the incidents a "dangerous escalation." Iran's state media, however, cited an unnamed official saying Tehran had "no plans to target the UAE."

The attacks, reported by BBC, come as tensions have escalated in the vital shipping corridor, through which roughly one-fifth of global oil and gas supplies pass. The Strait of Hormuz has remained largely restricted since February, when U.S. and Israeli strikes on Iran prompted Tehran to impose controls on maritime traffic.

The president on Monday escalated the rhetoric even further, warning Iran that it would be "blown off the face of the earth" if it targeted U.S. vessels escorting commercial shipping in the strait.

The comments followed conflicting accounts of events in the waterway on Monday. Washington said its naval forces were protecting shipping lanes as part of a broader effort to restore navigation, while Iran rejected U.S. claims and said it had only fired warning shots at an American warship. The president also said the U.S. had "shot down" Iranian fast boats, a claim Tehran disputed.

South Korea also confirmed on Monday that one of its vessels anchored off the UAE had been damaged by an explosion and fire while Oman reported injuries after a residential building was struck near the Strait of Hormuz. Qatar condemned the attack on the tanker and called for the strait's "unconditional reopening."

Markets reacted quickly. Oil prices rose more than 5%, with Brent crude surpassing $115 per barrel, while global stocks declined amid concerns over prolonged disruption to energy supplies.