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Drone strike at Egypt port near Suez Canal ignites new shipping risks

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A drone strike that sparked fires on two gas vessels in Egypt’s Mediterranean ‌port of Damietta has raised a new threat to shipping through the Suez Canal, one of the last major export routes available to Saudi oil amid the expanding U.S.-Iran war.

No one has claimed responsibility for what Egypt’s cabinet said on Thursday was an unidentified drone that caused a fire on two vessels at Damietta a day earlier. The port lies near the Suez ​Canal, which links the Mediterranean and Red Seas, Reuters reported.

The drone hit the U.S.-owned gas storage tanker Energos Winter, causing a fire that spread to ​a second vessel, people familiar with the incident said.

Iran has denied any involvement in the Damietta strike.

“Egypt is an important ⁠friend and partner in the region, and its security is of utmost importance to us,” Iranian Foreign Minister Abbas Araqchi wrote on social media. “We must all ​be vigilant against Israeli plots and false-flag operations designed to undermine regional peace.”

The five-month-old war has already brought shipping traffic through the Strait of Hormuz, a slender ​chokepoint in the global energy trade, to a virtual standstill.

Before the conflict, the waterway between Oman and Iran carried about a fifth of global oil and liquefied natural gas supplies. The strait has become the main hurdle in peace talks and a flashpoint for repeated escalations in the conflict.

SAUDI PROPOSES MULTINATIONAL MARITIME DEFENCE COALITION

Iran-aligned Houthis on July 20 declared a maritime embargo ​against Saudi Arabia, opening a new front against the U.S. and its allies in the Iran war.

Recent Houthi attacks on shipping prompted London’s marine insurance market ​on Thursday to widen its “high risk” zone in the Red Sea to include more coastline adjacent to Saudi ports.

Saudi Arabia unveiled plans on Thursday for a multinational maritime defence coalition aimed at ‌protecting international ⁠shipping and energy supply routes in the Red Sea region.

The drone strike on the two gas tankers in Egyptian waters has renewed energy security concerns about the nearby Suez Canal and a related pipeline, a vital export route for Saudi Arabian oil since the beginning of the Iran war, say energy analysts.

A growing volume of Saudi oil, along with other shipping, has been diverted north up the Red Sea toward the Suez Canal and the SUMED pipeline, according to data from market intelligence ​firm Kpler. For Asian customers, however, that ​means a longer voyage around Africa ⁠instead of south via the Gulf of Aden.

Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, people familiar with the matter told Reuters.

While Iran has ​publicly rejected the Omani proposal, its semi-official ILNA news agency quoted foreign ministry spokesperson Esmaeil Baghaei as saying talks ​with Oman over the ⁠strait were continuing.

IRAQ SAYS IT HAD NO KNOWLEDGE OF STRIKES ON SAUDI TARGETS

In a first in the five-month war, Saudi Arabia publicly joined strikes alongside U.S. forces, targeting Iran-aligned groups in eastern Iraq on Wednesday in retaliation for what it said were drone attacks on Saudi oil targets launched from Iraq.

According to assessments by Saudi Arabia ⁠and regional partners ​the Houthis carried out the attacks on Saudi Arabia from Iraqi territory in coordination with Iraqi ​groups.

Iraqi government spokesperson Haider al-Aboudi said on Thursday that Baghdad neither approved nor had prior knowledge of U.S.-Saudi strikes on Iraqi territory, the state news agency reported.

The latest strikes in Iraq and Egypt ​threatened to draw more Middle Eastern countries into the conflict.

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North Korea’s Kim vows to expand ties with Russia, backs victory in ‘sacred war’

Kim ​delivered a ⁠similar message to Chinese President Xi Jinping in a reply published by KCNA ​on Sunday.

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North Korean leader Kim Jong Un said he would “expand and deepen” joint work with Russia ​in a message to Russian President Vladimir ‌Putin, state media KCNA reported on Tuesday.

In a reply sent on Monday to Putin’s congratulations for North Korea’s 78th ​founding anniversary, Kim said Pyongyang’s government had a ​firm will to broaden cooperation with Russia “in a ⁠comprehensive way” based on friendship, mutual assistance, and ​what he described as the countries’ alliance relations.

Kim ​also said he was convinced of Russia’s victory in the current “sacred war for defending the security interests of the country and international ​justice”, language that appeared to refer to Russia’s war ​in Ukraine.

He pledged his “invariable support” for Putin and the Russian ‌people.

The ⁠remarks come as Moscow and Pyongyang have drawn markedly closer, with North Korea sending troops to fight alongside Russian forces in Ukraine in 2024 and deepening military cooperation under a ​mutual defence pact.

Kim ​delivered a ⁠similar message to Chinese President Xi Jinping in a reply published by KCNA ​on Sunday, saying North Korea would ​work with ⁠China to further develop their traditional friendship and advance their shared socialist cause.

Both messages were responses to ⁠congratulatory ​letters sent by Putin and Xi ​on September 9, when North Korea marked the 78th anniversary of ​its founding.

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Houthi advance in Yemen puts U.S. in a new bind

The U.S. administration can’t afford to have the Houthis close ​the strait, driving up energy prices and disrupting global trade.

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A lightning offensive by the Iran-aligned Houthis has put the militants in a position to control a crucial Middle East waterway, creating a major new problem for U.S. President Donald ​Trump as his war with Iran grinds on in its seventh month, Reuters reported.

Widening the Middle East conflict, Houthi fighters have advanced south along Yemen’s coast, increasing their ability to choke off the Bab el-Mandeb ‌Strait — the “Gate of Tears” at the mouth of the Red Sea — giving Tehran potential leverage over both of the region’s main oil-shipping corridors.

The militants reached the island of Perim on Friday, in the middle of the strait between Yemen and Africa. That is bad news for Saudi Arabia, which has been shipping much of its oil from Red Sea ports since the war effectively closed the Strait of Hormuz, on the opposite side of the Arabian Peninsula.

It also comes at a difficult time for Trump, who is already grappling with record-low approval ratings and searching ​for a way out of the conflict, most recently by announcing an economic pressure campaign designed to force concessions from Iran’s government.

High U.S. gasoline prices driven by the conflict have jeopardized his Republican Party’s chances of keeping ​control of Congress in the November midterm elections. Iran remains defiant despite being hurt militarily and economically.

“Just weeks ago, Trump adopted a strategy of squeezing Iran’s economy while keeping military ⁠conflict at levels too low to squeeze the American economy,” said Stephen Wertheim, a senior fellow at Carnegie Endowment for International Peace. “The Houthis have shattered Trump’s plan.”

The U.S. administration can’t afford to have the Houthis close ​the strait, driving up energy prices and disrupting global trade.

But at the same time, entering a fight with a foe that has withstood previous attacks by Saudi Arabia and the U.S. would be a dangerous new mission for a U.S. military already ​stretched by the fighting in Iran.

Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, phoned Trump on Thursday and asked for U.S. military help fighting the Houthis, three sources told Reuters. He was told Washington would not intervene directly for now but would help with intelligence, the sources said.

Trump confirmed on Saturday that he had spoken to the crown prince, and said the Houthis had also phoned his administration and asked for Washington not to become directly involved in the conflict, read the report.

A senior Trump administration official declined to address specific questions, but said ​the U.S. is focused on national security interests such as ensuring freedom of navigation in the Red Sea “while empowering our regional partners to take the lead in managing and resolving regional security challenges”.

Saudi Arabia, Iran and the Houthis did not respond ​to a request for comment. Iran’s foreign ministry said in a statement on Thursday that the Yemen conflict could not be solved by blockade or military action against the Houthis and called for dialogue, without addressing Iran’s own role.

Iran responded to ‌U.S. and Israeli ⁠attacks earlier this year by disrupting the Strait of Hormuz, the outlet to the Gulf through which around a fifth of global oil supplies flowed before the war.

If the Houthis close the Bab el-Mandeb, that would deal another economic blow, constraining another 7% of global petroleum supplies and about 12% of global trade.

“This was always the worst-case scenario, that the Iranians exert control not only of Strait of Hormuz but Bab el-Mandeb, two of the leading energy choke points in the world,” said David Schenker, who served as Assistant Secretary of State for Near East Affairs during Trump’s first term and is now at the Washington Institute for Near East Policy, a think tank.

“It’s an enormous amount of leverage that [the Iranians] have in hand.”

Analysts and former officials say Trump ​now faces a choice: devote U.S. forces and scarce ​air-defense munitions to pushing back the Houthis, or leave ⁠Saudi Arabia and its allies, a Yemeni government based in the south, to confront them alone.

The Houthis seized Yemen’s capital 12 years ago, and a Saudi-led military intervention has failed to dislodge them since.

Taking on the Houthis would effectively end a deal Trump struck last year in which the U.S. would stop bombing the group in exchange for a halt to strikes ​on Red Sea shipping. That would be likely to expose U.S. forces to missile attacks from Yemen.

It would also be another burden for the U.S. ​military.

U.S. officials say a fight with ⁠the Houthis could require significant naval and aerial resources and divert U.S. intelligence assets, given the need to pinpoint Houthi positions that have changed since last year.

If U.S. Navy vessels and aircraft have to start shooting down Houthi drones and missiles, it could also worsen diminished stockpiles of U.S. munitions and air-defense interceptors.

The senior administration official denied that the U.S. was concerned about its resources being stretched. “The United States Military has more than enough munitions, ammo, and stockpiles to serve all of the Commander-in-Chief’s strategic goals and beyond,” ⁠the official said.

Tim ​Lenderking, who served as U.S. special envoy on Yemen under former President Joe Biden and is now a principal at law firm Squire Patton ​Boggs, said that with Trump signaling an unwillingness to get directly involved militarily against the Houthis, the U.S. needs to do more to share intelligence with the Saudis for their air campaign and step up diplomatic and material support for Yemen’s internationally recognized government.

“This administration came in asking the question, ‘What can ​Yemen do for us?’” Lenderking said during a webcast sponsored by the Middle East Institute think-tank in Washington. “Well, Yemen can spoil our day.”

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Trump says he does not regret Iran war despite potential impact on midterm elections

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U.S. President Donald Trump says he does not regret launching the war against Iran, despite its potential impact on the November midterm elections.

In an interview with Fox News host Laura Ingraham, Trump said that if given the choice again, he would take the same course of action, adding that he does not believe in the word “regret.”

Trump also dismissed suggestions that some of his supporters had become upset or demoralized over the war, saying they were proud that he was preventing Iran from obtaining a nuclear weapon.

He also reiterated his claim that the war would end immediately after the midterm elections, saying, “It ends right after the election.”

The conflict and the resulting rise in oil and gas prices have become a major political issue for Republicans ahead of the elections.

The United States and Israel launched attacks on Iran on February 28, while Iran responded with strikes on Israel and Gulf states hosting U.S. military bases. The fighting has reportedly killed thousands and displaced millions.

Trump has cited the weakening of Iran’s nuclear capabilities as one of the main objectives of the war. Iran, however, says its uranium-enrichment program is peaceful and maintains that it does not possess nuclear weapons.

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