Oil prices surged early Tuesday after an Iranian drone strike hit the fully loaded Kuwaiti tanker Al Salmi near Dubai. By 3:40 a.m., Brent crude had risen 2.05% to $109.59 a barrel, while U.S. benchmark West Texas Intermediate (WTI) gained 2.96% to $105.93.
As the session progressed, Brent extended its gains to $114.58 a barrel. A later Reuters global markets update put it at $115.50, underscoring how sharply the attack amplified fears of supply disruption in the Gulf.
#Kuwait Petroleum Corporation #KPC: Kuwaiti very large crude carrier “Al-Salmi” was directly attacked by Iranian forces while positioned in the anchorage area of #Dubai Port in the #UAEhttps://t.co/iNEN0dM3L0#KUNA pic.twitter.com/i3srkSZ27c
— Kuwait News Agency – English Feed (@kuna_en) March 30, 2026
Kuwaiti tanker catches fire near the Strait of Hormuz
The attack targeted the Al Salmi, a giant crude carrier from Kuwait. According to the initial maritime security alert, the strike hit the vessel on its starboard side while it was sailing 31 nautical miles, or more than 57 kilometers, northwest of Dubai, near the Strait of Hormuz.
The impact sparked a fire on board. Crew members remained safe, and officials reported no immediate casualties. Authorities also said they had not detected any environmental damage in the immediate aftermath, although the scale of the incident quickly raised concerns because of the ship’s cargo.
Fears of an oil spill grow
Kuwait Petroleum Corporation said the Al Salmi was fully loaded when the drone struck. The company said the attack damaged the tanker and ignited a fire inside the vessel, while teams continued to assess the full extent of the damage.
Because the ship was carrying a full crude cargo, the incident also fueled fears of a possible oil spill in surrounding waters, even though officials had not confirmed any leak in the immediate aftermath.
UKMTO WARNING 029-26
Click here to view the full warning.https://t.co/UGR5vLAKQi#MaritimeSecurity #Marsec pic.twitter.com/LyI3EV6kMf
— UKMTO Operations Centre (@UK_MTO) March 30, 2026
Oil prices jump as Kuwaiti tanker attack heightens Gulf tensions
The strike has deepened anxiety over the security of shipping lanes near the Strait of Hormuz, one of the world’s most important chokepoints for oil exports. Any disruption in or around the area can send immediate shockwaves through global crude markets.
Monday had already marked a major moment for traders, with WTI settling above $100 a barrel for the first time since the current phase of the regional war began on February 28. Tuesday’s rally showed that investors now fear direct attacks on tankers and energy infrastructure could trigger a more sustained, risk-driven climb in oil prices.
