The UAE suspended operations at the Shah gas field and Fujairah oil port on Tuesday following drone attacks.
Attributed to Iran, the strikes caused fires at both facilities. This incident marks the first successful strike on a producing upstream asset in the UAE during the current conflict. The Shah field is a joint venture with Occidental Petroleum and ranks as one of the world's largest sour gas developments.
Fujairah serves as a critical hub for oil storage and ship refueling outside the Strait of Hormuz. The disruptions amplified fears of a deepening global energy crisis. The shutdown threatens the UAE's primary remaining crude export outlet to global markets. Regional conflict has already reduced the UAE's daily oil output by more than 50%.
Brent crude surged 3% following the infrastructure hits. The international benchmark topped $103 per barrel. Traders are factoring in heightened supply risks from the region.