US investigates UAE tanker attack report

US government agencies and the Pentagon have reacted with caution to reports of attacks on oil and products tankers in UAE-controlled waters off the coast of the emirate of Fujairah yesterday.

A total of four ships were "sabotaged," the UAE said. Two Saudi Arabian oil tankers were hit by a "sabotage attack", the Saudi energy ministry said.

The US Central Command, which oversees US military assets providing protection for critical oil shipping lanes in the Middle East, said it is aiding the investigation at the request of the UAE government. The US Maritime Administration in an alert said that the incident and precise means of the attack have not been confirmed and advised "exercising caution when transiting the area."

The Department of Energy said it was "aware of efforts to disrupt oil shipping as reported by the governments of Saudi Arabia and the UAE," adding that it is "monitoring the oil markets, and is confident they remain well-supplied." The State Department referred inquiries to the UAE government.

The incident did not result in any injuries or spills, and details on the attack remain scant. The attack on the tankers comes amid rising tension in the Mideast Gulf following Washington's decision not to renew sanctions waivers for buyers of Iranian crude and the escalation in the US rhetoric directed at Iran.

Saudi, UAE and US officials have not publicly blamed Iran for the attacks. But oil futures prices initially surged by $1.50-1.90/bl in early trading on concerns that the incident could lead to a confrontation between Iran and the US that would threaten crude, products and LNG flows through the critical strait of Hormuz. Fujairah is located at the entrance to the straits of Hormuz in the Gulf of Oman.

Prices later retreated on the lack of any solid news linking Iran to the attacks, and on expectations of a slowdown in oil demand growth amid a worsening trade dispute between the US and China.

Oil markets remain on tenterhooks, awaiting further information on the attacks. Just two days before the incident, the US Maritime Administration issued an advisory warning of an increased possibility since early May "that Iran and/or its regional proxies could take action against US and partner interests," including oil production infrastructure.

The White House last week announced the deployment of a US carrier group and a bomber task force to the Middle East as a means to confront an unspecified threat from Iran.

But US officials never have detailed the threat or explained their reasons for believing why the security situation would deteriorate. The US Navy regularly rotates its forces, including carrier groups, in the Mideast Gulf. On 8 April, the Pentagon announced deployment of the USS Abraham Lincoln, which is now en route to the Mideast Gulf.

"We will see what happens with Iran. If they do anything, it will be a very big mistake," President Donald Trump said at the White House today.

The tougher rhetoric likely signals a further escalation in the administration's "maximum pressure" campaign against Tehran. Secretary of state Mike Pompeo sought to underscore the point by making an unscheduled visit in Brussels today for a meeting with the EU member countries' foreign ministers. The EU foreign affairs council was meeting to discuss steps to preserve the Iran nuclear deal, among other agenda items.

Pompeo planned to discuss "recent threatening actions and statements" from Iran, the State Department said ahead of the meeting. "Secretary Pompeo will continue to coordinate closely with our allies and partners to ensure the security of our mutual interests in the Middle East and around the world."

But his European counterparts urged him to exercise restraint.

"Mike Pompeo heard very clearly from us today, not only from myself, but also from the other EU member states' ministers, that we are living in a crucial and delicate moment, where the most relevant and responsible attitude to take is that of maximum restraint and avoiding any escalation on the military side," EU foreign affairs commissioner Federica Mogherini said following the meeting.

"We are really worried about the risk of a conflict happening by accident with an escalation that is unintended on either side, with some kind of conflict," UK foreign minister Jeremy Hunt said.