Oil prices spiked briefly following the attack, contributing to rising U.S. fuel costs.
A massive oil tanker off the coast of Dubai was set ablaze on Monday following a drone attack, as tensions between the U.S. and Iran escalate. President Donald Trump warned that the U.S. would target Iran’s energy infrastructure, including oil wells and plants, if Tehran does not reopen the Strait of Hormuz.
The tanker, the Kuwait-flagged Al-Salmi, was carrying roughly 2 million barrels of crude oil, valued at over $200 million at current prices. Kuwait Petroleum Corp., the vessel’s owner, reported that the fire caused hull damage but no injuries. Dubai authorities later confirmed they had brought the fire under control.
This incident is part of a series of attacks on commercial ships in the Gulf and Strait of Hormuz since the U.S. and Israel struck Iran on February 28. The month-long conflict has already resulted in thousands of casualties, disrupted energy supplies, and stoked fears of a global economic downturn.
Oil prices spiked briefly following the attack, contributing to rising U.S. fuel costs. The national average retail gasoline price surpassed $4 per gallon on Monday for the first time in over three years, according to GasBuddy, as U.S. crude prices climbed above $101 a barrel.
The ongoing hostilities show no sign of easing, heightening concerns over a wider regional conflict and global economic uncertainty.
