Drone strikes targeted energy facilities in the United Arab Emirates and Iraq on Tuesday. An attack at the Shah gas field, one of the world's largest sour gas facilities, forced a suspension of operations. A separate strike ignited a fire at an oil tank farm in the Port of Fujairah.
The regional conflict entered its third week as shipping through the Strait of Hormuz remains nearly shut down. The UAE temporarily closed its airspace in response to the threats, disrupting operations at Dubai International Airport. These coordinated strikes on a key OPEC member mark an expansion of hostilities across Gulf energy lifelines.
Brent crude prices remained above $100 per barrel following the attacks. Investors injected a significant risk premium into the market due to potential long-term impacts on the global energy supply.