Dubai/Basra: Iranian explosive-laden boats appear to have attacked two fuel tankers in Iraqi waters, setting them ablaze and killing one crew member on Wednesday, after projectiles struck three vessels in Gulf waters, according to port officials, maritime security sources and risk firms.

The latest attacks mark an escalation in the conflict between Iran and US-Israeli forces, raising the number of ships struck in the region since fighting began to at least 16.

Shipping in the Gulf and along the narrow Strait of Hormuz, which carries around a fifth of the world’s oil, has come to a near standstill since the US and Israel began strikes on Iran on February 28. The conflict has pushed global oil prices to their highest levels since 2022.

The Thai-flagged dry bulk vessel Mayuree Naree was struck by “two projectiles of unknown origin” while sailing through the strait earlier on Wednesday, causing a fire and damaging the engine room, the ship’s Thai-listed operator Precious Shipping said in a statement.

“Three crew members are reported missing and believed to be trapped in the engine room,” the company said.

“The company is working with the relevant authorities to rescue these three missing crew members,” it added, noting that the remaining 20 crew members had been safely evacuated and were ashore in Oman. Images released by the Thai navy showed smoke billowing from the rear of the ship.

The Ministry of External Affairs of India has said that it "deplores the fact that commercial shipping is being made a target of military attacks in the ongoing conflict in West Asia". The Thai-flagged bulk carrier was bound for Gujarat's Kandla Port. "We have seen reports about the attack on a Thai ship, Mayuree Naree, in the Strait of Hormuz on March 11. The ship was bound for Kandla in India," MEA said.

In a statement carried by the Tasnim news agency, Iran’s Revolutionary Guards said the vessel was “fired upon by Iranian fighters”, suggesting the first direct engagement by the force, which had previously relied on missiles or drones.

The vessels targeted in late-night armed boat attacks in the Gulf near Iraq were the Marshall Islands-flagged Safesea Vishnu and Zefyros, which had loaded fuel cargoes in Iraq, two Iraqi port officials said.

“We recovered the body of a foreign crew member from the water,” a port security official said, adding that Iraqi rescue teams were continuing to search for other missing seafarers. It was not immediately clear which ship the deceased crew member was linked to.

According to data from Lloyd’s List Intelligence, the US-based commercial operator and beneficial owner of Safesea Vishnu are Safesea Transport Group and Safesea Group respectively. They did not immediately respond to requests for comment.

One Iraqi port security source said Zefyros is flagged in Malta and provided Reuters with a list of crew members.

Zefyros Trading SA is the registered owner of the tanker matching that name and description, according to Lloyd’s List Intelligence data. The database lists UK-based Cygnus Tankers Limited as the commercial operator and the George & Vassilis Michael family group of companies, a key player in Greek shipping, as the beneficial owner.

Cygnus Tankers did not immediately respond to requests for comment. Reuters could not immediately reach the other entities.

Iran’s Revolutionary Guards have warned that any ship passing through the Strait of Hormuz would be targeted. US President Donald Trump has threatened to intensify American attacks on Iran if it continues to obstruct the strait.

Sources familiar with the matter said the US Navy has refused near-daily requests from the shipping industry for military escorts through the Strait of Hormuz since the start of the war, citing the high risk of attacks. Trump, however, has said the US is prepared to provide naval escorts whenever necessary.

Two other ships sustain minor damage
The Japan-flagged container ship ONE Majesty also sustained minor damage on Wednesday after being struck by an unknown projectile about 25 nautical miles (46 km) northwest of Ras Al Khaimah in the United Arab Emirates, two maritime security firms said.

Its Japanese owner Mitsui OSK Lines and a spokesperson for Ocean Network Express, the charterer, said the vessel was hit while anchored in the Gulf. An inspection of the hull revealed minor damage above the waterline.

All crew members are safe, they said, adding that the vessel remains fully operational and seaworthy. The cause of the incident is under investigation.

Another vessel, a bulk carrier, was also struck by an unknown projectile roughly 50 miles northwest of Dubai, maritime security firms said.

The Marshall Islands-flagged Star Gwyneth sustained damage to its hull, according to maritime risk management company Vanguard. The vessel’s owner, Star Bulk Carriers, said the projectile hit the hold area while the ship was anchored.

There were no injuries among the crew and the vessel did not list. In its statement, the Revolutionary Guards also referred to another ship that it said was hit by projectiles on Wednesday morning. Reuters was not immediately able to confirm that report.