The Government of Dubai has confirmed that firefighting teams successfully extinguished the fire that broke out on a huge Kuwaiti oil tanker after an Iranian drone attack off Dubai waters early on Tuesday.

Dubai authorities said specialised maritime firefighting units responded to the incident aboard the Very Large Crude Oil Carrier (VLCC) Al-Salmi, which was targeted while at an anchorage point outside a Dubai port.

No injuries have been reported, and the safety of all 24 crew members has been secured, according to Dubai Media Office.

Crude oil prices briefly spiked anew after Kuwait's state news agency reported the attack on the tanker, which can carry around 2 ​million barrels of oil worth more than $200 million at current prices, said a Reuters report.

Kuwait Petroleum Corp, the ship's owner, said work was underway to assess damage and warned of a possible oil spill.

Attacks by both sides is showing no signs of easing, with fears of a wider conflict growing.

Arabs to pay for war?

Meanwhile, the White House said Trump was ​considering asking Arab nations to pay for the cost of the war. "It's an idea that I know that he has and something that I think you'll hear more from him on," Leavitt said in response to a reporter's question about the idea.

Thousands of soldiers from the US Army's elite 82nd Airborne Division have started arriving in the Middle East, two US officials told Reuters on Monday, part of a reinforcement that would expand Trump's options to include the ‌deployment of ⁠forces inside Iranian territory, even as he pursues talks with Tehran.

White House press secretary Karoline Leavitt later said Trump wanted to reach a deal with Tehran before an April 6 deadline he set last week after extending an earlier deadline he had set for Iran to open the Strait of Hormuz.

Leavitt said talks with Iran were progressing, adding that what Tehran says publicly differs from what it tells US officials in private.

The Wall Street Journal later reported Trump had told aides he is willing to end the ​military campaign against Iran even if the strait ​remains largely closed and leave a complex ⁠operation to reopen it for a later date.

US proposals unrealistic: Iran

Iran said earlier on Monday it had received US peace proposals via intermediaries, following talks on Sunday between the foreign ministers of Pakistan, Egypt, Saudi Arabia and Turkey.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the proposals were "unrealistic, illogical and excessive".

Soon after Baghaei's remarks, Trump ​said: "Great progress has been made but, if for any reason a deal is not shortly reached, which it probably will be, and if the Hormuz Strait is not immediately 'Open for Business,' we will conclude our lovely 'stay' in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil ⁠Wells and Kharg ​Island," Trump wrote in a social media post, also threatening to attack Iranian desalination plants.