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Iran hits UAE energy supplies, tanker struck near Strait of Hormuz
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Iran hits UAE energy supplies, tanker struck near Strait of Hormuz

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Last updated: March 17, 2026 11:31 am
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Published: March 17, 2026
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Naval units from Iran and Russia carry out to simulation of rescue a hijacked vessel during the joint naval drills held at the Port of Bandar Abbas near the Strait of Hormuz in Hormozgan, Iran on February 19, 2026.

Anadolu | Anadolu | Getty Images

A fresh wave of attacks on the United Arab Emirates’ energy infrastructure has ramped up concerns over prolonged supply disruptions amid the Iran war.

It comes after the world’s largest ultra-sour gas development was struck by a drone, a fire broke out in the UAE’s Fujairah Oil Industry Zone, and another tanker was hit near the strategically vital Strait of Hormuz.

The UAE also reopened its airspace on Tuesday after a brief shutdown following a fire caused by an Iranian drone attack hitting a fuel tank.

Operations at the UAE’s massive Shah gas field remained suspended on Tuesday following a drone attack, which caused a fire at the facility, according to Abu Dhabi authorities. No injuries were reported from the incident.

The Shah gas field is located 180 kilometers southwest of Abu Dhabi and is operated by a joint venture between ADNOC and Occidental Petroleum Corp. It has the capacity to produce 1.28 billion standard cubic feet of gas per day and 4.2 million tons of sulfur per year.

Separately, a drone attack sparked a fire at the Fujairah Oil Industry Zone, a critically important hub for the UAE’s crude exports and bunkering operations. The Fujairah government’s media office said on Tuesday that no casualties were reported.

Fujairah, one of the world’s top hubs for storing crude and fuels, is located on the eastern seaboard of the UAE and serves as a key shipping hub for the wider region.

It has faced repeated attacks in recent weeks, underlining the vulnerability of the UAE’s only export route that bypasses the Strait of Hormuz.

Shipping traffic through the Strait of Hormuz, one of the world’s most important energy choke points, has virtually ground to a halt since the U.S. and Israel launched strikes against Iran on Feb. 28. Iran has retaliated by targeting ships trying to pass through the maritime corridor.

Spanning around 248 miles from onshore oil facilities at Habshan to Fujairah, the UAE’s Abu Dhabi Crude Oil Pipeline (ADCOP), or the Habshan–Fujairah oil pipeline, is estimated to handle 1.5 million barrels per day, with a reported total capacity of close to 1.8 million barrels per day.

Oil prices

A tanker was also struck while at anchor by an unknown projectile about 23 nautical miles east of the UAE’s Fujairah in the Gulf of Oman, according to an update published Monday from the United Kingdom Maritime Trade Operations (UKMTO) center.

The incident caused minor structural damage, with no injuries to the crew and no environmental impact was reported, the UKMTO said.

The latest report comes after six vessels sustained damage in and around the Persian Gulf, Strait of Hormuz and Gulf of Oman last week as Iran warned oil prices could climb to $200 a barrel.

A smoke plume rises from an ongoing fire near Dubai International Airport in Dubai on March 16, 2026. Flights were gradually resuming at Dubai airport on March 16, previously the world’s busiest for international flights, the airport operator said, after a “drone-related incident” sparked a fuel tank fire nearby, as Iran kept up its Gulf attacks.

– | Afp | Getty Images

Oil prices were higher on Tuesday morning as energy market participants closely monitored ongoing supply disruptions.

International Brent crude futures with May delivery advanced 3% at $103.21 per barrel, while U.S. West Texas Intermediate futures with April delivery rose 3.2% at $96.52.

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. Brent closed above $100 for the first time in four years last week.

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