Iran Strikes UAE’s Fujairah Port, Only Hormuz Bypass Burning, Oil Hits $114

The Iran UAE attack on Monday sent shockwaves through global energy markets as Iranian forces targeted the Fujairah port with a barrage of missiles and drones, setting ablaze the only major oil export route that bypasses the Strait of Hormuz. Oil prices today surged to $114.44 per barrel for Brent crude news, marking the most significant escalation since a fragile ceasefire took hold on April 8.

The assault on Fujairah’s Petroleum Industries Zone represents a critical blow to the UAE’s energy infrastructure, as the emirate serves as the terminus for the Abu Dhabi Crude Oil Pipeline (ADCOP), which was built specifically to avoid the bottleneck at Hormuz. Three Indian nationals were moderately injured in the attack, and firefighters battled flames throughout Monday evening as the UAE Ministry of Defence reported engaging 12 ballistic missiles, three cruise missiles, and four drones launched from Iranian territory.

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ADCOP Pipeline 1.5M BPD Threatened, First Strike Since April 8 Ceasefire

The Strategic Value of Fujairah Under Fire

The Iran UAE attack targeted what energy analysts have long considered the region’s insurance policy against Hormuz disruptions. Fujairah sits on the Gulf of Oman, outside the strait, and the ADCOP pipeline carries crude oil 400 kilometers from inland fields at Habshan to the port. With a current capacity close to 1.8 million barrels per day, the pipeline has been processing around 1.1 million barrels daily, leaving approximately 700,000 barrels of spare capacity.

The UAE Foreign Ministry condemned what it called “renewed treacherous Iranian aggression” and warned that the country reserves its “full and legitimate right to respond” to the attacks. Four missile alerts were issued across the UAE on Monday, the first such warnings since the ceasefire began nearly a month ago. Commercial flights bound for Dubai and Abu Dhabi turned around midair, and all UAE airports were temporarily closed as air defense systems engaged the incoming threats.

Oil Prices Today Reflect Supply Shock Fears

Brent crude news showed futures jumping 5.8 percent to settle at $114.44 per barrel, up $6.27 from the previous session. West Texas Intermediate (WTI) crude rose $4.48, or 4.4 percent, to settle at $106.42. The price surge reflects mounting concerns that the UAE’s bypass route, which cost an estimated $4.2 billion to construct, may no longer provide the security originally intended.

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Murban crude, a benchmark for Gulf oil, also climbed 3.4 percent to $107.30 by early Tuesday morning in Tokyo trading. Gas prices 2026 projections from Eurasia Group analysts warn that motorists could face $5 per gallon by June without a deal to reopen the Strait of Hormuz, with California already seeing prices at $6 per gallon. Since the war began on February 28, gas prices have increased by approximately $1.16 per gallon nationwide.

The Dual Blockade Strangling Global Energy

The Iran UAE attack comes as the United States attempts to reopen the Strait of Hormuz through what President Donald Trump has called “Project Freedom.” U.S. Central Command Admiral Brad Cooper told reporters that American forces successfully opened a passage through the strait free of Iranian mines, and that two U.S. merchant ships had transited the waterway on Monday.

Iran’s unified military command responded by warning commercial ships against accepting U.S. naval escorts, stating that American forces “will be attacked if they intend to approach and enter the Strait of Hormuz.” The Revolutionary Guards Navy issued a map claiming expanded Iranian control near the strait, encompassing UAE ports of Fujairah and Khorfakkan as well as the coast of Umm Al Quwain emirate.

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Around 20 percent of global oil and liquefied natural gas supplies passed through the strait before the conflict began, making it one of the world’s most critical energy chokepoints. The U.S. Navy launched a counter-blockade on April 13 to cut off Iranian oil exports, telling at least 49 commercial ships to turn back since that date. The combined effect of Iran restricting passage for “hostile” nations while the U.S. enforces its own blockade has created what analysts call the “Dual Blockade“ of 2026.

Limited Alternatives to Hormuz Transit

Beyond the now-threatened ADCOP pipeline, only Saudi Arabia maintains an operational alternative route with substantial capacity. The Abqaiq-Yanbu pipeline system, also known as the East-West Crude Pipeline or Petroline, crosses Saudi Arabia connecting Abqaiq to Yanbu on the Red Sea. The system has a design capacity of 5 million barrels per day, though Saudi Aramco reported in March 2025 that it had increased capacity to 7 million barrels per day.

As of early 2026, the pipeline uses approximately 2 million barrels per day of its capacity, which theoretically leaves between 3 and 5 million barrels per day of spare capacity available. Saudi Arabia previously reported that an April attack targeted the East-West pipeline, though officials did not publicly disclose the extent of the damage.

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Iran’s Jask oil terminal on the Gulf of Oman, which officials officially inaugurated in 2021 with a reported capacity of 1 million barrels per day, remains effectively non-operational. Iran exported a test load from Jask in late 2024, but the terminal has not shipped any further oil since then.

Ceasefire Crumbles as Diplomacy Stalls

The attacks shattered the relative calm that had held since Pakistan brokered a ceasefire between Washington and Tehran on April 8. Direct talks in Islamabad on April 11 failed to produce an agreement on lasting peace, with Iran’s nuclear program and its control over the Strait of Hormuz remaining as key points of contention.

Iranian state media quoted an anonymous military official as saying Tehran had “no plan” to target the UAE or its oil fields, attributing the incidents to “U.S. military adventurism aimed at creating a passage for the illegal transit of ships through the restricted waterways.” The semi-official Tasnim news agency later cited another unnamed source warning that if the “UAE takes unwise action, all of its interests will become Iran’s target.”

International Response and Civilian Disruption

The UAE Ministry of Education announced distance learning for all public and private schools nationwide through Friday, citing the need to ensure “the safety and wellbeing of the educational community.” Saudi Arabia, Qatar, Kuwait, Bahrain, Jordan, Canada, Germany, the United Kingdom, and the European Union all condemned the attacks and expressed support for UAE sovereignty.

Natasha Turak, a journalist based in Dubai, described the atmosphere in the UAE as one of dismay and frustration. Residents did not feel entirely surprised by the escalation, primarily because the key drivers of the conflict and the main sticking points between the U.S. and Iran remain unresolved. The UAE has now received the highest volume of Iranian attacks during the conflict, just as it did when fighting first erupted in late February.

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Iran’s latest diplomatic proposal calls for the U.S. to lift sanctions, end the blockade, withdraw forces from the region, and cease all hostilities, including Israel’s operations in Lebanon. Iranian officials said they were reviewing the U.S. response, though Foreign Ministry spokesperson Esmail Baghaei told reporters that changing demands made diplomacy difficult. President Trump expressed doubt over the weekend that the proposal would lead to a deal, and negotiations remain deadlocked as oil markets brace for prolonged supply disruptions.