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Drone Strike Hits U.S.-Owned LNG Vessel at Egypt’s Damietta Port

Egypt’s preliminary probe found a drone caused fires on two gas ships, a finding that raises the prospect of U.S. retaliation and threatens Mediterranean energy and shipping routes.

Overview

  • The strike occurred on Wednesday and struck the U.S.-owned floating storage and regasification unit Energos Winter, with the blaze spreading to the nearby Gaslog Salem, according to maritime security firms and trading sources.
  • Egypt’s cabinet and petroleum ministry said their initial inquiries concluded a drone caused the fires, that the blazes were contained with no casualties, and that the damaged vessels were moved offshore for further investigation.
  • Officials and industry sources say the Energos Winter has a breached tank and both ships are expected to be out of service while repairs and probes continue, reducing spare regasification capacity at Damietta during peak summer demand.
  • Markets reacted quickly with a sharp risk premium in oil prices and traders warning the attack increases costs for shippers and insurers that already view Suez-linked and Mediterranean routes as higher risk.
  • The strike expands the geographic reach of the U.S.–Iran conflict into the Eastern Mediterranean after recent exchanges between U.S., Iranian and Iran-aligned forces, and U.S. President Donald Trump has been briefed and signalled possible retaliation.