More tankers come under attack in Gulf waters as U.S.-Iran war escalates

Dubai, March 5, 2026 (Saudi Arabia Breaking News) – More tankers came under attack in Gulf waters on Thursday as the U.S.-Iran war escalated, while Iranian drones entered Azerbaijan, raising the risk of the crisis spreading to more oil producers in the region.

A Bahamas-flagged crude oil tanker was targeted by an Iranian remote-controlled boat laden with explosives while anchored near Iraq’s Khor al Zubair port, according to initial assessments. A second tanker at anchor off Kuwait was taking on water and spilling oil after a large explosion on its port side.

Nine vessels have come under attack since the conflict between the United States, Israel and Iran broke out on Saturday, according to the information provided. Iran also launched a wave of missiles at Israel early on Thursday and sent drones into Azerbaijan, injuring four people.

About 200 ships, including oil and liquefied natural gas tankers and cargo vessels, remained at anchor off the coasts of major Gulf producers, according to Reuters estimates based on ship-tracking data from the MarineTraffic platform. Hundreds of other vessels remained outside the Strait of Hormuz, unable to reach ports, shipping data showed. The waterway is a key artery for around a fifth of the world’s oil and LNG supply.

Donald Trump offered U.S. Navy escorts and insurance in an effort to restart shipping flows and curb energy prices. Lloyd's of London said it is engaging with the U.S. government on a plan.

BP evacuated foreign staff from Iraq’s Rumaila oil field after two unidentified drones landed inside the field, Iraqi oil sources said. Iraq has cut oil production by nearly 1.5 million barrels per day after running out of storage and being unable to load tankers, officials told Reuters.

A refinery in Kuwait shut down and another reduced its processing rate, while a third refinery in Bahrain also cut output, according to the information provided.

Oil prices extended gains on Thursday, with Brent up 3% and WTI up 4%. Both have risen 16% since Saturday, the draft said. A benchmark European gas price gained about 3% on Thursday and was up nearly 60% so far this week.

Vladimir Putin said Russia could halt gas supplies to Europe amid the spike in energy prices linked to the Iran crisis, according to the draft. Qatar, which provides 20% of global LNG supply, halted gas production earlier this week due to the conflict, the draft said.

China asked refiners not to sign new contracts to export fuel and to try to cancel shipments already committed, several people with knowledge of the matter said on Thursday.