An Iranian drone reportedly hit a Kuwaiti oil tanker anchored at Dubai port, setting the vessel on fire, media reported earlier today, adding in later updates that the fire has been brought under control, per statements by the Dubai authorities, cited by Reuters.
The very large crude carrier Al Salmi, with a capacity to hold 2 million barrels of oil, was fully laden at the time of the attack, the Kuwait Petroleum Corporation said earlier today, as quoted by Gulf News.
The drone attack had caused “damage to the vessel’s hull and the outbreak of a fire onboard, with a potential oil spill in the surrounding waters,” the Kuwait Petroleum Corporation also said.
The news pushed oil prices higher but briefly. At the time of writing, Brent crude was trading at $112.94, which was a dip from Monday, while West Texas Intermediate was trading at $102.73 per barrel.
The latest price spike came despite assurances from President Trump, made on social media, that he wants to end the war and that the Iranian side is on board with negotiations. Iran has repeatedly denied Trump’s claims of negotiations and potential for a quick agreement.
Yet the U.S. president has been alternating between such updates and threats to Iran, the latest released yesterday and containing references to all of Iran’s power plants and its desalination plans, which Trump said would get “obliterated” if Tehran did not agree to a deal. Legally, the targeting of civilian infrastructure is a war crime, media have noted in coverage of the news.
Trump recently set another deadline for the deal with Iran, April 6. Meanwhile, the average gas price in the U.S. passed the $4 per gallon mark for the first time in over three years, according to Reuters. This makes ending this war an urgent matter for the U.S. federal government and the Republican Party. For now, the chances of that happening, however, seem remote.
By Irina Slav for Oilprice.com
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