At 3:20 pm CET on Wednesday, a drone struck the Energos Winter, a floating storage and regasification unit owned by US firm New Fortress Energy. The ship, flagged under the Marshall Islands, caught fire and passed the blaze to the nearby LNG tanker Gaslog Salem.
Egypt’s cabinet confirmed on Thursday that a drone was responsible for the fire, making it the first attack on Egyptian soil since the US-Iran war began in February. No party has claimed responsibility, and the investigation remains ongoing. The incident is a stark shift for Egypt, which has so far avoided direct escalation in the conflict.
The fire and its immediate consequences
Both crews were evacuated safely, and the fire was brought under control. The vessels were moved offshore for damage assessment. Petroleum Minister Karim Badawi visited the scene to oversee the response, though the cause of the attack remains unclaimed. Verified videos posted on social media showed clouds of black smoke rising from the port and tugboats hosing down the ships with water.
The geopolitical context and regional volatility
The strike follows a series of recent escalations. On the same day, Iran’s IRGC launched ballistic missiles at US forces in Jordan, and the US and Saudi Arabia bombed Iran-linked sites in Iraq. The Houthi group in Yemen announced a maritime embargo against Saudi Arabia, raising concerns of a broader regional conflict. The Damietta attack came hours after the US and Saudi Arabia carried out joint air strikes on Iran-backed armed groups in Iraq that they said had attacked Saudi oil facilities with drones 30 times in recent days at the direction of Iran's Islamic Revolutionary Guard Corps (IRGC). Iraq's paramilitary Popular Mobilisation Forces (PMF), which is dominated by Iran-backed Shia militias, said at least 20 of its members were killed in the strikes, which they called an "extremely serious escalation".
Damietta, a key Mediterranean port, had been highlighted by Iranian state media as a potential target for "retaliation against Ukrainian interests" two days before the fire. The map described it as a gateway for European gas imports, suggesting the attack had both symbolic and strategic significance.
Egypt’s Suez Canal, a vital artery for global trade, has already seen a drop in traffic since the war began. Now, the Houthi threat of a toll and potential strikes on noncompliant ships adds further uncertainty. The region’s stability is increasingly in question. Iran's foreign ministry also condemned the strikes and warned of "dangerous consequences".
Implications for Egypt’s energy and regional role
Damietta once served as an LNG export hub in the Arab world, but declining domestic gas production has turned Egypt into a net importer. The fire at the port not only disrupted operations but also raised concerns about the security of energy infrastructure.
Iranian Foreign Minister Abbas Araghchi has stated the country does not seek escalation but is demanding compensation for the strike on its Caspian Sea vessel. This incident, however, signals a possible shift in Iran’s strategy to extend its reach and assert influence beyond traditional borders.
Energy analytics firm Kpler confirmed that the fire at Damietta has disrupted terminal operations. The damage to the regasification unit, which operates under high pressure, could pose further risks if gas leaks are not contained.