Iran hit a fully laden Kuwaiti oil tanker off the coast of Dubai during a fresh wave of attacks around the Persian Gulf; a sign it’s willing to escalate strikes on energy assets as the war drags on.

The assault on March 31 on the Al-Salmi, a large crude carrier in an area packed with ships, is one of the most significant on a vessel since the U.S. and Israel began bombarding the Islamic Republic more than a month ago. Dubai authorities said a fire was contained and all 24 crew members are safe, with no oil leaking.

The U.S.-Israeli alliance continued to target Iran, where state media reported a strike on a major pharmaceutical producer. Tehran kept up attacks on Arab countries as well as Israel, with the United Arab Emirates — including Dubai — Saudi Arabia and Iraq all reporting missile fire. 

Despite the ongoing hostilities, oil prices were steady, with U.S. benchmark WTI crude trading at about a $104 a barrel. That was partly because of a report in the Wall Street Journal saying U.S. President Donald Trump is willing to wind down military operations and pressure Tehran diplomatically into reopening the Strait of Hormuz.

Countries short of oil as a result of the Hormuz closure should either buy from the U.S. or “go to the Strait and TAKE IT,” Trump said in a social-media post. “You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us.”

U.S. gasoline on March 31 climbed above an average of $4 a gallon for the first time since August 2022, a factor likely to pile further pressure on Trump to resolve the crisis with midterm elections just months away.  

If Hormuz remains shut for a prolonged period, many energy analysts and traders say oil prices would need to climb much higher to bring supply and demand into balance. Crude could surge to as much as $200 a barrel if Hormuz — through which about a fifth of the world’s oil and liquefied natural gas supplies typically flow — isn’t opened in six to eight weeks, according to energy-market consultancy FGE NexantECA.

Trump has repeatedly vacillated between saying a deal with Iran is imminent and warning he’s prepared to intensify the U.S. military campaign. On March 30, he threatened to target Iran’s energy infrastructure and water desalination plants, which could potentially constitute a war crime under the Geneva Conventions, if the strait stays shut.

He’s previously given a deadline of April 6 for Iran to open the waterway.

White House Press Secretary Karoline Leavitt said the U.S. is “conducting more intense, targeted strikes with devastating combat power with each passing day” and the American operations are proceeding “according to plan.” 

The U.S. military said over the weekend that about 3,500 sailors and Marines have arrived in the Middle East on an amphibious assault ship. It’s unclear if Trump plans to use them, and any ground operation would be highly risky. His administration has signaled to allies in the past week that it has no immediate plans for a land invasion of Iran.

Israel’s military said it’s prepared to sustain operations “for weeks to come.” 

Iran has consistently denied peace negotiations are progressing and rejected a 15-point plan from Trump sent via Pakistan last week. Iran says it wants war reparations, recognition of its control over shipping traffic through Hormuz, and pledges from the U.S. and Israel that they won’t attack again.

The war is threatening to cause economic damage around the world, with the near-closing of the Hormuz strait choking supplies of energy, fertilizer and other critical commodities. That’s led to fears of stagflation, or a combination of higher inflation and slower growth.

U.S. Treasury Secretary Scott Bessent told Fox News on March 30 that Washington is “going to retake control” of Hormuz, ensuring safe navigation “through U.S. escorts or a multinational escort.” The U.S. announced such a plan in the early days of the war, though it hasn’t yet been executed.

An Iranian parliamentary committee approved legislation to impose fees in the strait, according to the semi-official Fars news agency. The bill hasn’t yet been put to the full parliament for a vote. 

Pakistan is considering options that include allowing other ships to ferry vital cargoes through Hormuz under its flag, after Iran said it would allow 20 of the nation’s vessels safe passage.  

More than 4,750 people have been killed in the war so far, roughly three-quarters of them in Iran. A U.S.-Israeli airstrike on the town of Mahallat in central Iran on March 31 killed 11 people, the semi-official Tasnim news reported, citing a local security official. 

Israeli Defense Minister Israel Katz reiterated a plan to occupy a zone in southern Lebanon as part of its parallel war against Iran-aligned Hezbollah militia, in which more than 1,100 people have been killed. About 600,000 residents who have been forced to leave the area will not be allowed to return until the safety of Israel’s northern communities is ensured, he said.   

Dozens have been killed in Israel and Arab Gulf states during the broader conflict. The U.S. has said 13 of its troops have died and more than 300 have been injured.

Tehran-backed Houthi militants in Yemen entered the war over the weekend, launching missiles at Israel. Iran is pushing the group prepare for a renewed campaign against Red Sea shipping, contingent upon any further escalation by the U.S. in its war on the Islamic Republic, according to European officials familiar with the matter.

Still, U.S. and Saudi Arabian officials have told European allies they believe the group wants to avoid further escalation and attacks on American and Saudi assets for now, said the people.

Egyptian President Abdel-Fattah El-Sisi urged Trump to end the war, saying only the U.S. president has the means to do so. Egypt is, along with Pakistan and Turkey, attempting to mediate.