UAE’s Fujairah halts oil shipments after fresh attack, Brent hits $104.5 per barrel

OIL shipments from Fujairah, the United Arab Emirates (UAE)’ main export terminal outside the Strait of Hormuz, were halted on Monday after another attack targeted the port facility.

The disruption comes amid intensifying hostilities across the Middle East, with the conflict increasingly threatening energy infrastructure across the region. Following the incident, global oil prices jumped by about 3 percent in early trading on Monday.

U.S. benchmark WTI crude climbed above $100 per barrel, while Brent crude rose past $106 per barrel. As of 11.24am Nigerian time, Brent stood at $104.4 per barrel, while WTI was $98.67.

According to Commodities Strategist at ING, Warren Patterson, any interruption at Fujairah could tighten supply conditions further. He noted that the port’s location outside the Strait of Hormuz normally helps avoid the risks associated with disruptions in the strategic waterway.

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Situated along the Gulf of Oman, Fujairah has served as a critical alternative export route for oil shipments that bypass the Strait of Hormuz. The waterway has reportedly remained largely closed to shipping traffic for over two weeks, forcing producers to rely more heavily on alternative export channels, Oilprice.com reported.

Despite its strategic advantage, the widening conflict now appears to be threatening facilities that do not depend on the Strait of Hormuz. Sources familiar with the situation told Bloomberg that Monday’s strike caused damage at the port, prompting authorities to suspend loading operations as a precaution while the extent of the damage is being assessed.

Beyond its role as an export point, Fujairah is also a major hub for oil storage and refined fuel supplies, as well as one of the world’s leading bunkering ports where vessels refuel.

The port also serves as the final destination for a pipeline transporting crude oil from Abu Dhabi’s massive oilfields. This latest disruption follows an earlier incident over the weekend.

Oil loadings had already been suspended on Saturday after a drone strike reportedly sparked a fire at the facility. Operations briefly resumed on Sunday before being halted again on Monday after another strike near the port.

The attacks come shortly after the United States bombed Iran’s key Kharg Island oil terminal on Saturday. Tehran subsequently warned it would retaliate by targeting energy infrastructure across the Middle East.