Laut Zeitung gab es heute Nacht ein großes Feuer.

English Translation

According to the newspaper, there was a big fire last night.

I’m trying to wrap my head around “gab es heute Nacht”:

gab es = there was (clearly past tense)

heute Nacht = tonight

How can “es gab ein Feuer heute Nacht” translate to “there was a fire last night”??

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It is surely confusing.

“Heute Nacht” in German can mean “last night” and “tonight”.
You have to rely on context and grammar.

“Heute Nacht hatte ich einen Albtraum” = “Last night I had a nightmare”
You are more likely to say that in the morning.
“Heute Nacht ist Vollmond” = “Tonight is/will be a full moon”
You are more likely to say that in the afternoon or evening.

There are variants:
“Letzte Nacht hatte ich einen Albtraum” = Last night … (that’s unequivocally)
“Diese Nacht hatte ich einen Albtraum”
“Diese Nacht ist Vollmond”

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