UAE’s Fujairah hit, causing a large fire at the key oil trading hub

A drone attack on Fujairah, the United Arab Emirates’ major oil trading hub, caused a massive fire and no injuries were reported, officials said on Monday.

“Civil Defense teams in the emirate immediately responded to the incident and continue their efforts to control the incident,” Fujairah Media Office posted on social media, according to Google’s translation. he said.

Oil loading operations at the major oil supply center were suspended as a result of the drone attack, Reuters reported, citing two unnamed sources. CNBC has contacted the UAE’s ADNOC and is awaiting a response.

The attack follows a separate drone strike and gunfire in Fujairah on Saturday, which underlined the fragility of the UAE’s only export route bypassing the strategically vital Strait of Hormuz.

Since the US and Israel launched an attack on Iran on February 28, shipping traffic at one of the world’s most important energy gateways has come to a near halt. Iran has retaliated by targeting ships attempting to pass through the sea corridor, with multiple incidents reported in recent days.

One of the world’s most important centers for storing crude oil and fuel, Fujairah is located on the east coast of the UAE and serves as a major shipping hub for the wider region.

Fujairah lies at the end of the UAE’s Abu Dhabi Crude Oil Pipeline (ADCOP), or Habshan-Fujairah oil pipeline, which bypasses the Strait of Hormuz.

The pipeline, which stretches approximately 248 miles from the onshore oil facilities at Habshan to Fujairah, is estimated to handle 1.5 million barrels per day and has a total capacity of close to 1.8 million barrels per day.

Iran’s Islamic Revolutionary Guard Corps said over the weekend that US interests in the UAE, including ports, docks and military sites, were legitimate targets.

Iranian state media warned Saying that US military forces were present, residents and workers in the Fujairah, Jabal Ali and Khalifa ports area were called for evacuation as soon as possible.

The UAE has been facing constant attacks from Iran amid the ongoing Middle East crisis, which has significantly affected life in the Emirates.

Indeed, Dubai International Airport said on Monday it had resumed a “limited” flight schedule after a drone attack on a fuel depot at the airport sparked a fire. Dubai Airport serves more than 90 million passengers annually and is ranked as the world’s busiest airport in terms of international traffic.

Oil prices continued their rise on Friday morning. While international benchmark Brent crude futures for May delivery increased by 3% to $106.18 per barrel, US West Texas Intermediate futures contracts for April delivery increased by 2% to $100.66.

Both contracts rose more than 50% last month, reaching their highest levels since 2022.

— CNBC’s Emma Graham contributed to this report.