reported from the source

Quick summary: Recent attacks on the UAE’s energy infrastructure have raised concerns over supply disruptions amid the ongoing Iran war, including a drone strike on a gas field and a tanker incident.

A fresh wave of attacks on the United Arab Emirates’ energy infrastructure has ramped up concerns over prolonged supply disruptions amid the Iran war. The world’s largest ultra-sour gas development was struck by a drone, leading to a fire in the UAE’s Fujairah Oil Industry Zone, and another tanker was hit near the strategically vital Strait of Hormuz. The UAE reopened its airspace on Tuesday after a brief shutdown caused by an Iranian drone attack on a fuel tank. Operations at the UAE’s Shah gas field remained suspended on Tuesday following a drone attack that caused a fire at the facility, with no injuries reported. The Shah gas field, located 180 kilometers southwest of Abu Dhabi, is operated by a joint venture between ADNOC and Occidental Petroleum Corp, with a production capacity of 1.28 billion standard cubic feet of gas per day and 4.2 million tons of sulfur per year. A separate drone attack sparked a fire at the Fujairah Oil Industry Zone, a critical hub for the UAE’s crude exports and bunkering operations, with no casualties reported. Fujairah, located on the eastern seaboard of the UAE, is a key shipping hub that has faced repeated attacks, highlighting the vulnerability of the UAE’s export route that bypasses the Strait of Hormuz. Shipping traffic through the Strait has virtually halted since U.S. and Israeli strikes against Iran on February 28, with Iran retaliating by targeting ships in the maritime corridor. The Abu Dhabi Crude Oil Pipeline (ADCOP) is estimated to handle 1.5 million barrels per day, with a total capacity of close to 1.8 million barrels per day. Additionally, a tanker was struck by an unknown projectile about 23 nautical miles east of Fujairah in the Gulf of Oman, causing minor structural damage but no injuries or environmental impact. This incident follows reports of six vessels sustaining damage in the Persian Gulf, Strait of Hormuz, and Gulf of Oman last week, as Iran warned oil prices could climb to $200 a barrel. Oil prices rose on Tuesday, with Brent crude futures advancing 2.2% to $102.36 per barrel and U.S. West Texas Intermediate futures also rising 2.2% to $95.55. Prices have surged about 40% during the U.S.-Iran war, reaching their highest levels since 2022, as shipping through the Strait has been severely disrupted.

Source: www.cnbc.com