UAE Oil Hub Suspends Operations After Drone Attack and Fire

On the morning of March 14, 2026 — Day 15 of Operation Epic Fury — debris from an Iranian drone intercepted over the emirate of Fujairah slammed into oil storage infrastructure at one of the world's most strategically important energy hubs, sparking a fire and forcing the suspension of crude oil loading operations [1][2]. Within hours, Iran's Islamic Revolutionary Guard Corps issued evacuation warnings for three major UAE ports, including Jebel Ali in Dubai — the busiest commercial port in the Middle East [5][6].

The attack on Fujairah was not just another skirmish in a widening war. It struck at the singular chokepoint that the global energy market had been counting on to keep at least some Gulf crude flowing after Iran effectively sealed the Strait of Hormuz two weeks ago. With Fujairah offline — even temporarily — the world's last major bypass route for roughly 20% of global oil supply was compromised, and crude prices surged past $100 per barrel for the second consecutive session [7][8].

The Strategic Prize: Why Fujairah Matters More Than Ever

Fujairah is not a household name, but in the architecture of global energy it is something close to irreplaceable. Located on the Gulf of Oman — critically, outside the Strait of Hormuz — the port serves as the terminus of the 360-kilometer Habshan-Fujairah oil pipeline, also known as the Abu Dhabi Crude Oil Pipeline (ADCOP). This pipeline carries approximately 1.5 million barrels per day of the UAE's benchmark Murban crude from onshore fields in Abu Dhabi to Fujairah's loading terminals and offshore jetties, bypassing the strait entirely [3][9].

The port is the world's second-largest bunkering hub and holds nearly 70 million barrels of storage capacity across 15 tank farms. The UAE has been building the world's largest crude oil storage facility there, designed to hold an additional 14 million barrels [3]. Before the war, Fujairah was an insurance policy — a route that existed precisely for a scenario like the Strait of Hormuz closure that experts had warned about for decades but that had never actually materialized.

Now that scenario is here. And the insurance policy just took a direct hit.

Source: FRED / U.S. Energy Information Administration

Data as of Mar 14, 2026CSV

A Cascade of Attacks

Saturday's strike on Fujairah was not an isolated event. It came as part of a sustained Iranian campaign against Gulf energy infrastructure that has escalated dramatically since Operation Epic Fury began on February 28, 2026.

According to Wikipedia's tracking of the conflict, Iran launched 189 ballistic missiles, 941 drone attacks, and 3 cruise missiles against the UAE alone through March 4 [10]. Oil production in the UAE dropped by between 500,000 and 800,000 barrels per day as a result of these strikes. A fire at the Ruwais Industrial Complex in Abu Dhabi — home to the country's largest oil refinery, a facility that can process 922,000 barrels per day — forced Abu Dhabi National Oil Company (ADNOC) to shut it down entirely [10].

The Fujairah port had already been hit once before, on March 9, when drone debris damaged naphtha storage tanks and forced a temporary suspension of operations. Most terminals resumed within days, but the Mena Fujairah Terminal and parts of the Vopak Horizon terminal remained offline [11][12]. Saturday's attack marked a second disruption in less than a week, raising questions about whether the port can be secured at all while the conflict continues.

Kharg Island and the Escalation Spiral

The immediate trigger for the Fujairah strike was the U.S. attack on Iran's Kharg Island on March 13-14, where American forces struck more than 90 military targets while — according to U.S. Central Command — deliberately "preserving the oil infrastructure" [5][13]. Kharg Island handles roughly 90% of Iran's oil exports. President Trump issued an ultimatum: if Iran continues to blockade the Strait of Hormuz, the oil network itself would be targeted next.

Iran's response was swift and pointed. The IRGC's Khatam al-Anbiya Central Headquarters declared that the U.S. had launched its Kharg Island strike from "ports, docks and hideouts" within UAE cities, making them "legitimate targets" [5][6]. A circular published by Iranian security-affiliated media instructed residents to immediately evacuate areas surrounding Jebel Ali Port in Dubai, Khalifa Port in Abu Dhabi, and Mina Al-Fujairah [6].

The evacuation warning for Jebel Ali was particularly alarming. The port handles approximately 15 million containers annually and is the commercial gateway for the entire region — its disruption would cascade far beyond oil markets into global supply chains for consumer goods, electronics, and industrial equipment [14].

The Numbers: A Market in Crisis

The Fujairah attack landed on an oil market already stretched to its limits. The FRED database shows the trajectory in stark relief: WTI crude oil sat at $66.96 on February 27, 2026 — the day before Operation Epic Fury began. By March 9, it had reached $94.65, a 41% increase in less than two weeks [15]. By March 14, WTI settled at $98.71 and Brent crude closed at $103.14, with intraday spikes pushing Brent as high as $119.50 earlier in the week [7][8].

Source: GDELT Project

Data as of Mar 14, 2026CSV

The supply destruction has been staggering. Combined oil production from Kuwait, Iraq, Saudi Arabia, and the UAE dropped by at least 10 million barrels per day as of March 12, according to reporting on the economic impact of the war [16]. Tanker traffic through the Strait of Hormuz — which normally handles roughly 20 million barrels per day of crude and products — has fallen to effectively zero. Major shipping companies including Maersk, CMA CGM, and Hapag-Lloyd have all suspended transits [17].

The International Energy Agency authorized a record 400-million-barrel release from emergency reserves — the largest such action in the IEA's 50-year history — with the United States leading with 172 million barrels from the Strategic Petroleum Reserve [18]. But analysts note that even this unprecedented measure can only buy time: strategic reserves are measured in months, not years, and they cannot replace the ongoing flow of Gulf production indefinitely.

The Bypass That Wasn't Enough

The core problem with Fujairah as a bypass route is one of arithmetic. The ADCOP pipeline has a maximum throughput of approximately 1.8 million barrels per day, and it was operating at about 71% utilization before the crisis, leaving roughly 440,000 barrels per day of spare capacity [9][3]. Saudi Arabia's East-West pipeline, which terminates at the Red Sea port of Yanbu, adds another 5 million barrels per day of theoretical bypass capacity.

But even operating at full capacity, these two pipelines combined can move only a fraction of the nearly 20 million barrels per day that normally transits the Strait of Hormuz. As Engineering News-Record reported in an analysis titled "Hormuz Bypass Infrastructure Was Sized for a Short Disruption. This Is Not That," the existing bypass infrastructure was never designed to replace the strait — it was designed to provide temporary relief during a brief closure [19].

And that analysis was written before Iran started attacking the bypass infrastructure itself.

ADNOC has informed international partners that they can proceed with loading "some March cargoes" from Fujairah, signaling a cautious attempt at normalization [12]. But the repeated attacks raise a fundamental strategic question: if Iran can hit Fujairah with relative ease, does the bypass route have any credible deterrent value?

The Wider Fallout

The Fujairah disruption sits within a broader pattern of Iranian attacks designed to close every alternative to the Strait of Hormuz. Iran has also struck Oman's Port of Salalah, another potential bypass terminal, in what The National described as an effort to "close alternatives to Hormuz" [20]. AWS data centers in the UAE and Bahrain have been hit by drone strikes, threatening billions in technology infrastructure. Iranian missiles and drones have killed six people and injured 141 others in the UAE, the majority of them civilians [5].

The national average U.S. gasoline price reached $3.41 per gallon by March 14, rising $0.43 in a single week. California prices have already surged above $5 per gallon [16]. The Philippines has ordered government offices to adopt a four-day workweek to conserve fuel. Airlines are warning of ticket price increases of at least 11% as jet fuel costs surge by up to 58%.

What Comes Next

The U.S. military has said it may be able to begin escorting commercial vessels through the Strait of Hormuz by the end of March, but officials acknowledged the Navy is "not ready" for the operation as of March 12 [21]. A French-led international naval escort coalition is also forming, but mine-clearing challenges and ongoing Iranian hostilities mean the waterway could remain effectively shut for months.

Iran's newly appointed Supreme Leader Mojtaba Khamenei — elevated after U.S. strikes killed his father, Ali Khamenei — has declared the Strait of Hormuz will remain closed as a "tool to pressure the enemy" [22]. With no diplomatic off-ramp in sight, every barrel that flows through Fujairah does so under the shadow of the next drone.

The attack on March 14 lasted hours, not days. The fire was extinguished. Most terminals are expected to resume operations. But the message was unmistakable: in this war, there is no safe route out of the Gulf. And the price of that reality — measured in dollars per barrel, in gasoline at the pump, in the budgets of nations scrambling to keep their economies fueled — is still climbing.