UAE carried out covert strikes on Iran's Lavan Island refinery in April: Report

New findings suggest Emirati forces targeted Iranian energy infrastructure during a sensitive ceasefire window, even as the US ramps up sanctions on Tehran’s oil network.

A startling report has emerged alleging that the United Arab Emirates (UAE) conducted covert military operations against Iranian soil earlier this spring. The disclosure, first highlighted by the Wall Street Journal, suggests that Emirati forces targeted the strategic oil refinery on Lavan Island in early April, a period when a ceasefire was reportedly being brokered by Washington.

The strike on Lavan Island, located in the Persian Gulf, reportedly triggered a massive blaze that severely crippled Iran’s domestic energy production. While the UAE has officially maintained a diplomatic stance regarding the broader regional conflict, these allegations indicate a significant escalation in the "shadow war" currently gripping West Asia.

Regional energy security under fire

The timing of the alleged strike is particularly sensitive. It reportedly occurred just as US President Donald Trump was publicly discussing a cessation of hostilities. Ground reports from the time noted a "major industrial accident" at the Lavan facility, but the involvement of a third-party regional power like the UAE remained a matter of speculation until now.

Local energy analysts suggest the damage to Lavan has had a cascading effect on Iran’s ability to refine fuel for domestic use, adding internal pressure to a regime already battling an 74-day-long internet blackout and mounting unemployment.

Sanctions and the shipping squeeze

Simultaneously, the US Treasury Department has intensified its economic campaign. On Tuesday, fresh sanctions were slapped on 12 entities—including three individuals and nine companies—accused of facilitating the Islamic Revolutionary Guard Corps’ (IRGC) illicit oil shipments.

The web of sanctions stretches from Hong Kong to Oman and includes four UAE-based firms. According to the US State Department, these entities are the "financial lungs" of the IRGC, enabling the movement of Iranian crude to Chinese markets despite the ongoing blockade of the Strait of Hormuz.

Global oil markets react

The ripples of the conflict are being felt far beyond the Gulf. In early Asian trade on Tuesday, Brent crude oil rose to $104.51 a barrel, as traders remain spooked by the fragility of the current ceasefire. The prospect of the US military campaign restarting has become a central talking point in Washington.

HR McMaster, former National Security Adviser, told CNN that the military campaign against Tehran is likely to resume as negotiations deteriorate. "Tehran is driving past another off-ramp," McMaster noted, suggesting that the rejection of US demands makes renewed kinetic action almost inevitable.

The Hormuz bottleneck

The Strait of Hormuz remains the primary flashpoint. The IRGC Navy has reportedly redefined the waterway as a "500-km operational zone," effectively extending its reach from the coasts of Jask to beyond Greater Tunb Island. This expansion has drawn sharp rebukes from Gulf neighbors.

Qatar’s Prime Minister, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, speaking at a press conference with Turkish officials, lamented that the waterway is being used as a "weapon in this war." The closure has disrupted not just oil, but one-third of the world’s fertilizer supply, prompting UN warnings of a "massive humanitarian crisis" if global agricultural chains remain severed.

Domestic turmoil in Tehran

Inside Iran, the economic toll is becoming harder to mask. Iranian lawmaker Meysam Zohourian confirmed on Tuesday that over 205,000 citizens have filed for unemployment benefits since the conflict began in late February.

Despite the internal strain, Tehran remains defiant. Ebrahim Rezaei, spokesperson for the Parliament’s National Security Committee, warned that if Iran faces another direct strike, the leadership may authorize uranium enrichment to 90%—a threshold that would put the country on the verge of weapons-grade capability.

Diplomatic efforts on life support

While Qatar and Turkiye have publicly backed Pakistan’s mediation efforts, the rhetoric from Washington remains split. While the Trump administration releases 53 million barrels of oil from the Strategic Petroleum Reserve to stabilize prices, Democratic leaders like Senator Chuck Schumer have slammed the conflict as an "illegal, costly war without an endgame."

As the May 17 ceasefire extension deadline approaches, the reported UAE strike on Lavan Island serves as a grim reminder that the regional peace is far more fragile than the diplomatic statements suggest. For now, the "fingers remain on the trigger," as both sides wait to see if the next move comes from a diplomat’s pen or a drone’s payload.