A drone attack on an LNG storage vessel at Egypt’s Port of Damietta has opened what appears to be a third front in the escalating Gulf and Red Sea conflict, according to maritime intelligence firm Windward.
According to Windward, a drone struck ENERGOS WINTER, a U.S.-managed, Marshall Islands-flagged LNG floating storage unit, on the evening of July 29 while the vessel was discharging cargo at Damietta. Fire spread to a second LNG tanker moored alongside, the Bermuda-flagged GASLOG SALEM. Windward reports that crews from both vessels were evacuated, the fires were brought under control, and no casualties were reported. Both tankers had departed the port area by the following morning.
No group has claimed responsibility for the strike, but Windward notes that Iranian state television had named Damietta as a retaliation target two days earlier, linking the threat to Ukraine’s strike on an Iranian vessel in the Caspian Sea. This, Windward says, points to an Iranian-directed operation distinct from the ongoing Houthi campaign in the Red Sea. Egypt’s Petroleum Ministry confirmed the incident but did not publicly identify a cause, according to the report.
Sanctions Target Hormuz Extortion Network
Separately, Windward reports that the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two firms — the Persian Gulf Marine Insurance Company and HormuzSafe Marine Services Authority — for allegedly running an IRGC-backed scheme that forces commercial vessels to buy mandatory insurance to transit the Strait of Hormuz. OFAC also designated eight shadow fleet vessels tied to Iranian crude and petrochemical transport, bringing the total number of Iran-linked vessels sanctioned since the start of the year to more than 100, per Windward’s reporting.
China-Houthi Safe Passage Confirmed in Practice
Windward also reports that a Chinese-flagged bulk carrier completed a full transit from China to Jeddah through the Bab el-Mandeb Strait during the active Houthi blockade of Saudi-linked shipping, using AIS declarations signaling Chinese nationality throughout the passage. According to Windward, this confirms in practice a reported China-Houthi arrangement exempting Chinese vessels from blockade-related fees, while Saudi-linked vessels continue to face targeting in the same corridor.
Gulf Conditions Remain Elevated
Windward’s data shows Hormuz recorded 20 transits on July 29, with 55 IRGC high-speed craft documented across multiple swarms — described as an abnormally elevated presence. The dark tanker cluster near Larak Island grew from 14 to 18 vessels, and all three export terminals at Kharg Island were reported empty. Separately, Windward states that Yanbu’s King Fahd Industrial Port has sustained fully dark, high-tempo loading for a fourth consecutive day.
Does this matter to you?
According to the source material, the geographic footprint of the conflict has now expanded beyond the Strait of Hormuz and the Red Sea into the eastern Mediterranean energy corridor, placing Egyptian LNG infrastructure within the active threat picture. Operators, insurers, and charterers with exposure to Damietta, Hormuz, Bab el-Mandeb, or Saudi-linked loading ports may find the sanctions actions, blockade dynamics, and dark-fleet activity described by Windward relevant to transit and counterparty risk assessments. The report indicates differential treatment of vessels by flag and nationality is now operating across both major waterways, which may be a factor in routing and compliance decisions.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Windward
