Operations at the United Arab Emirates' Shah gas field were still suspended on Tuesday following a drone strike, and a fresh attack sparked a blaze at the port of Fujairah, a major export terminal where oil loading by state firm ADNOC has been stopped. The sequence of incidents raises the prospect that the OPEC producer's last remaining crude export route could be entirely isolated from global markets, a development that may intensify an energy squeeze that has already pushed prices higher.
The UAE's alternative export terminals lie inside the Gulf, which has effectively been cut off from international shipping by Iran's control of the Strait of Hormuz - the narrow waterway between Iran and Oman through which roughly one-fifth of the world's oil supply previously transited.
Monday's strike on the Shah field - situated about 180 km (111.85 miles) southwest of Abu Dhabi and described as one of the world's largest sour gas fields - compounds recent disruptions to the country's energy infrastructure. The field is operated by ADNOC in partnership with Occidental Petroleum and supplies at least 500 million cubic feet of gas per day to the domestic grid.
The No. 3 OPEC producer's daily crude output has fallen by more than half since the conflict began, with the effective closure of the strait forcing state oil company ADNOC to carry out widespread production shut-ins, Reuters has reported. Loading of ADNOC crude remains suspended at Fujairah, a source familiar with the situation said.
Fujairah has endured a series of attacks and is typically the export point for more than 1 million barrels per day of the state's Murban crude. Located just outside the Strait of Hormuz, Fujairah continues to operate but at reduced capacity, according to Kpler.
Gulf Arab states, including the UAE, have been subject to over 2,000 missile and drone attacks since the start of the U.S.-Israeli war on Iran on Feb. 28. Those strikes have targeted U.S. diplomatic missions and military bases, as well as oil infrastructure, ports, airports and residential and commercial buildings.
The immediate operational impacts are clear: a major gas producing asset serving the domestic market is offline, and a principal crude loading terminal has suspended ADNOC exports. The combined effect is to tighten supply channels for both gas and oil originating in the UAE while leaving the country's remaining export hubs vulnerable given ongoing regional maritime constraints.
Market participants and regional operators face constrained options while the Shah field remains non-operational and Fujairah's loading activities are paused. Until operations can be safely restored at both sites, disruptions to domestic gas delivery and crude export flows are likely to persist.
Detailed summary
The Shah gas field is suspended after a drone attack; a separate assault caused a fire at Fujairah port and prompted ADNOC to halt oil loading. The closures threaten to sever the UAE's remaining crude export route, while the Strait of Hormuz remains effectively closed to normal shipping flows. Shah supplies at least 500 million cubic feet of gas daily to the UAE grid and is jointly operated by ADNOC and Occidental Petroleum. ADNOC's crude loading at Fujairah - a typical outlet for more than 1 million barrels per day of Murban crude - remains suspended and Fujairah is operating at lower capacity, per Kpler. Gulf Arab states have endured over 2,000 missile and drone attacks since Feb. 28, targeting a range of military, diplomatic and civilian infrastructure.