Drone Attack on LNG Tanker in Egypt Escalates Middle East Tensions

A drone struck the US-owned liquefied natural gas (LNG) floating storage and regasification unit (FSRU) tanker, *Energos Winter*, at Egypt's Mediterranean port of Damietta on Wednesday. The British maritime security firm Ambrey reported, based on an initial assessment, that the attack caused a fire that subsequently spread to a second vessel, the *Gaslog Salem*. This incident highlights once again the impact of geopolitical risks in the Middle East on global energy markets.

The attack occurred on Wednesday, July 29, 2026, at Damietta Port. Multiple trading sources and security officials confirmed that the drone hit the *Energos Winter*, with the fire then spreading to the other vessel. Egypt's Petroleum Ministry confirmed a fire at the port but did not specify its cause or mention a drone attack. According to the British maritime risk management group Vanguard, the *Energos Winter* was hit on its starboard side by an unidentified projectile, igniting a fire that was later brought under control. Ambrey stated that both ships' crews were evacuated and the fire was extinguished. No injuries or fatalities were reported in the incident.

This development had a significant impact on already tense energy markets. Following news of the attack, Brent crude futures surged by more than 8% on Wednesday, pushing the benchmark well above $90 a barrel. This increase reinforced the perception of a threat to supply security posed by the conflicts in the Middle East. Port services firm Inchcape separately reported that two gas tankers had caught fire at Damietta. Operations at Damietta Port were briefly disrupted after the incident, but activities at other berths are expected to resume normally.

The strike amplifies concerns that the Middle East conflict could expand beyond its main fronts. The incident follows recent escalations, including Iran firing missiles at US forces in Jordan and the United States and Saudi Arabia striking Iran-backed armed groups in Iraq. Yemen's Iran-backed Houthi group's declaration of a naval blockade on Saudi Arabia further exacerbates regional tensions. No group has immediately claimed responsibility for the attack, adding to the uncertainty in the region.

Analysts and market observers are warning about the potential repercussions of such attacks on global energy supply security. Any further expansion of the conflict or new assaults on critical energy infrastructure could lead to increased volatility in oil and gas prices. This event once again underscored the vulnerability of shipping routes and energy supply chains. Geopolitical developments in the region are expected to remain a decisive factor in the trajectory of energy markets in the coming period.