The United Arab Emirates is facing its most severe energy infrastructure crisis since the Iran war began, as a relentless wave of drone strikes has simultaneously knocked out operations at the Shah gas field and dealt repeated blows to the Fujairah export terminal — the UAE’s only remaining crude export outlet outside the now-closed Strait of Hormuz.
Fujairah Under Fire — Again
Oil loading at the UAE’s port of Fujairah was at least partly halted on Tuesday after a third attack in four days caused a fire at the export terminal, while operations at the Shah gas field remained suspended after an earlier attack. The cascading disruptions threaten to completely sever the OPEC producer’s remaining crude export outlet from global markets, potentially deepening a crisis that has sent energy prices surging.
Fujairah, on the Gulf of Oman, has been one of several key oil export points in the Middle East that do not depend on tankers passing through the Strait of Hormuz, which has been virtually closed for traffic for more than two weeks. But Fujairah has been repeatedly targeted by strikes that have forced suspension of loading operations. A shipping agent cited by Bloomberg reported that FOTT berths were not operational and that Vopak terminals had suspended operations at their single point mooring until further notice.
The Fujairah government’s media office confirmed that no casualties were reported in Tuesday’s attack. But the operational picture was stark. Fujairah is one of the world’s top hubs for storing crude and fuels, located on the eastern seaboard of the UAE, and serves as a key shipping hub for the wider region — as well as the UAE’s only export route that bypasses the Strait of Hormuz.
The Shah Gas Field Hit
Monday’s attack on the Shah field — located about 180 km southwest of Abu Dhabi and one of the world’s largest sour gas fields — added to the disruptions already battering the UAE’s energy sector. The field, operated by ADNOC in a joint venture with Occidental Petroleum, supplies at least 500 million cubic feet of gas daily to the domestic grid. Operations were shut while damage was assessed, and no injuries were reported.
The Shah gas field has the capacity to produce 1.28 billion standard cubic feet of gas per day and 4.2 million tons of sulfur per year. The scale of what has gone offline is significant — though analysts note it does not immediately threaten national energy stability given the UAE’s broader production base.
A Tanker Also Struck
The day’s incidents extended beyond fixed infrastructure. An unknown projectile struck a Kuwait-flagged tanker 23 nautical miles east of Fujairah, according to the United Kingdom Maritime Trade Operations. The vessel sustained structural damage while docked, though no injuries to the crew were recorded and no environmental impact was reported.
The Broader Toll on the UAE
Gulf Arab states including the UAE have faced more than 2,000 missile and drone attacks since the start of the U.S.-Israeli war on Iran on February 28, striking diplomatic missions, military bases, oil infrastructure, ports, airports, ships, and residential and commercial buildings.
The UAE’s daily oil production has dropped by more than half due to the ongoing conflict, following forced shutdowns. This comes after earlier attacks that halted operations at the Ruwais refinery and disrupted the Fujairah export terminal. Global energy majors are feeling the strain too — France’s TotalEnergies has reported that roughly 15 percent of its total production is offline due to the war, while BP and ExxonMobil also carry significant regional exposure.
Markets React
Oil prices were trading higher on Tuesday as energy market participants closely monitored ongoing supply disruptions. International Brent crude futures advanced 2.2 percent to $102.36 per barrel, while U.S. West Texas Intermediate futures rose 2.2 percent to $95.55. Prices have surged about 40 percent during the war, reaching their highest levels since 2022.
The repeated attacks on the UAE’s energy sector expose significant vulnerabilities in its infrastructure and raise questions about operational resilience. The ongoing targeting of key energy assets suggests a widespread security challenge rather than isolated incidents — amplifying the geopolitical risk premium built into oil prices and creating an environment where market sentiment is easily swayed by further escalation.
With no ceasefire in sight and Iran continuing to strike Gulf infrastructure, the UAE faces the uncomfortable reality that its last viable export corridor may not hold.
