A lethal attack on an oil tanker which killed one British and one Romanian national used explosive drones also known as "loitering munitions", the US military confirmed on Saturday.
The tanker Mercer Street is linked to an Israeli billionaire and was attacked in the Arabian Sea on Thursday evening. An Israeli official told The New York Times that the drones had been flown directly into living quarters underneath the ship's bridge, implying a deliberate attempt to cause loss of life.
"Initial indications clearly point to a UAV-style attack," read a statement from US Centcom, the US military general headquarters in the Middle East, in reference to unmanned aerial vehicles (UAVs).
"US Navy personnel are on the Mercer Street, assisting the vessel’s crew. The US Navy’s 5th Fleet headquarters is co-ordinating with vessel ownership regarding the type of assistance requested," the statement added.
Private maritime intelligence firm Dryad Global also referred to a drone sighting involving the vessel prior to the attack.
Iran and Israel have traded accusations of attacking each other's vessels in recent months. On Friday, Israeli Foreign Minister Yair Lapid said he had told Britain's foreign secretary of the need for a tough response to the incident.
"Iran is not just an Israeli problem, but an exporter of terrorism, destruction and instability that harms us all. The world must not be silent in the face of Iranian terrorism," Mr Lapid said.
The company which owns the Mercer Street belongs to Israeli tycoon Eyal Ofer, and released a statement saying an investigation was under way and that it was not aware of any other personnel being harmed.
The company described the attack as “piracy”, without elaborating.
The British victim worked as a guard for UK maritime security firm Ambrey, the company said.
Iran and Yemen’s Tehran-backed Houthi rebels have employed suicide drones in the past, unmanned aircraft loaded with explosives that detonate on impact with a target.
Zodiac said the ship was Japanese-owned and sailed under a Liberian flag. Britain's defence ministry had earlier described it as Israeli-owned.
Other Israeli ships have been targeted in recent months, with Israel blaming Iran for the incidents.
The British military's UK Maritime Trade Operations said an investigation was under way into the incident, which it said happened late on Thursday night, north-east of the Omani island of Masirah.
The location is more than 300 kilometres south-east of Oman’s capital, Muscat.
Earlier on Thursday, the British military group said it was investigating another unexplained incident in the same area, but did not elaborate.
“At the time of the incident the vessel was in the northern Indian Ocean, travelling from Dar es Salaam to Fujairah with no cargo on board,” Zodiac said, naming ports in Tanzania and the United Arab Emirates, respectively.
Satellite tracking data from MarineTraffic.com showed the vessel had been near where British officials said the attack occurred.
The incident took place outside Oman’s waters, according to an official quoted by the Oman News Agency.
The official at Oman's Maritime Security Centre said the air force flew sorties over the site and a naval ship was dispatched after receiving a distress signal from the vessel. However, the ship’s owners and crew said the vessel was able to proceed to its destination without further assistance.
Since former US president Donald Trump unilaterally withdrew America from the nuclear accord in 2018, there have been a series of attacks on ships in the region, with Iran the prime suspect.
Breast cancer in men: the facts
1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.
2) Symptoms can include a lump, discharge, swollen glands or a rash.
3) People with a history of cancer in the family can be more susceptible.
4) Treatments include surgery and chemotherapy but early diagnosis is the key.
5) Anyone concerned is urged to contact their doctor
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Profile
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport
