A drone strike on two gas vessels at Egypt's Mediterranean port of Damietta has raised fears that the escalating US-Iran conflict could threaten shipping through the Suez Canal, one of the last remaining safe export routes for Saudi oil.
Egypt's cabinet said on Thursday that a preliminary investigation found an unidentified drone had caused a fire aboard two vessels at Damietta Port on Wednesday. No group has claimed responsibility.
Authorities said measures were being taken to safeguard Egypt's national security.
Shipping sources familiar with the incident said the drone struck the US-owned gas storage tanker Energos Winter, sparking a fire that spread to another vessel.
The incident came hours after the US military said it had struck command centres and drone facilities belonging to Iran's Islamic Revolutionary Guard Corps (IRGC) in retaliation for Iranian attacks on US forces in the region.
Iranian state media, citing the IRGC, said the US strikes killed three civilians and wounded two children on Qeshm Island, while three Guards members were killed in Zanjan province.
The governor of Khuzestan province said two student dormitories in Ahvaz were also damaged in the overnight attacks.
In response, the IRGC said it had targeted the US-operated Azraq air base in Jordan.
"With the help of God, the aggressor will be punished today," the Guards said in a statement carried by Iranian state media.
The Pentagon did not immediately comment on the reported strike.
Jordan's armed forces earlier said they had intercepted five Iranian missiles.
Meanwhile, Kuwait's Defence Ministry said an Iranian attack struck a building owned by a Chinese company in northern Kuwait, killing one worker and causing significant damage.
In a major escalation of the five-month conflict, Saudi Arabia on Wednesday publicly acknowledged joining US-led strikes against Iran-aligned groups in eastern Iraq in retaliation for drone attacks on Saudi oil facilities launched from Iraqi territory.
Following the joint operation, Saudi Defence Minister Prince Khalid bin Salman met US Vice President JD Vance in Washington to urge the Trump administration to avoid further escalation, two sources told Reuters.
The conflict began in February when the United States and Israel launched a bombing campaign against Iran. A ceasefire reached in June later collapsed amid renewed fighting centred on the Strait of Hormuz.
The latest attacks in Egypt and Iraq have heightened concerns that more countries could be drawn into the conflict after Yemen's Iran-backed Houthi movement announced a naval blockade targeting Saudi Arabia last week, threatening shipping through the Red Sea.
Following repeated Houthi attacks on commercial vessels, London's marine insurance market expanded its "high-risk" zone in the Red Sea to include waters adjacent to Saudi ports.
US President Donald Trump said Washington would respond forcefully to Iranian missile attacks on American forces while continuing efforts to secure a diplomatic settlement.
Oil prices surged more than 8% on Wednesday before easing about 1% on Thursday, with Brent crude trading just below $90 a barrel.
Iran said on Wednesday it had struck three tankers attempting to transit the Strait of Hormuz via what it described as an unauthorised route.
However, ship-tracking data showed a QatarEnergy-operated liquefied natural gas tanker successfully exited the strait overnight—the first such vessel to leave the waterway since 11 July. Iran's semi-official Fars news agency said Tehran had granted permission for the tanker to pass.
Sources told Reuters that Oman had proposed a Gulf-backed plan under which ships using the Strait of Hormuz would pay voluntary transit fees. While Tehran rejected the proposal on Wednesday, Foreign Ministry spokesperson Esmaeil Baghaei later said discussions with Oman on the issue were continuing.
Separately, Reuters reported that Iran is expected to receive the first shipment of up to 400 Chinese-made shoulder-fired air-defence missile launchers within weeks as it seeks to bolster its air defences following the conflict. Iran's Foreign Ministry did not comment, while China's Foreign Ministry denied the report.