Oil holds above $100 as Fujairah attacks halt bunkering

Drone debris damaged FOIZ; bunkering halted; oil topped $100

On March 3–4, drones launched from Iran struck storage tanks at the Fujairah Oil Industry Zone (FOIZ), triggering a fire and disrupting operations. No casualties were reported, as reported by Maritime Executive (https://maritime-executive.com/article/drone-strikes-reported-in-fujairah-and-duqm?utm_source=openai).

On March 9, debris from a drone intercepted by UAE air defense damaged bunkering storage at Fujairah, forcing a halt to barge loadings. Port activities were affected but not entirely stopped, according to Lloyd’s List (https://www.lloydslist.com/LL1156569/Fujairah-bunker-barge-loading-halted-by-oil-storage-damage-from-debris?utm_source=openai).

Why the Fujairah port attacks matter for bunkering and trade

Fujairah is a principal global bunkering hub positioned outside the strait of Hormuz, so storage or terminal damage directly curtails marine fuel availability. Some suppliers suspended bunker deliveries and an estimated 70–80% of bunker barges went offline, as reported by Ship & Bunker (https://shipandbunker.com/news/emea/972110-iranian-attacks-disrupt-bunkering-activity-in-fujairah?utm_source=openai).

Regional officials framed the attacks as a security and trade risk because they target energy infrastructure and a key refueling node. “A serious act of aggression” and a “blatant escalation” that threaten regional security and maritime trade, said Jasem Al Budaiwi, Secretary General of the Gulf Cooperation Council, as reported by Emirates 24/7 (https://www.emirates247.com/uae/gcc-secretary-general-iranian-attack-on-port-of-fujairah-a-serious-act-of-aggression-blatant-escalation-threatening-regional-security-stability-2026-03-04-1.744537?utm_source=openai).

Policymakers also moved to buffer supply risk. The International Energy Agency announced a coordinated release of 400 million barrels from strategic reserves to cushion disruptions, a step taken even after crude had already moved above $100, as reported by Le Monde (https://www.lemonde.fr/en/economy/article/2026/03/12/iea-s-release-of-400-million-barrels-is-unprecedented-but-its-effectiveness-is-debated675136119.html?utm_source=openai).

Disruptions remain concentrated in FOIZ storage and bunkering, with intermittent activity rather than a full port shutdown. The operational picture is fluid as safety checks and repairs proceed in parallel with limited marine fuel logistics.

market sensitivity now hinges on perceived transit risk at the Strait of Hormuz and on how long bunkering constraints persist. According to Arab News, Fitch’s Angelina Valavina said any Hormuz closure may be “temporary,” adding that anticipated 2025–26 oversupply could limit the price spike even as concerns have pushed oil above $100 (https://www.arabnews.com/node/2635347/business-economy?utm_source=openai). At the time of this writing, the combination of transit risk and intermittent port operations remains the central driver of price volatility rather than confirmed long-duration outages.

Risks, alternatives, and routes bypassing Hormuz to watch

Which routes and buyers are most exposed right now?

Cargoes that normally transit the Strait of Hormuz face the highest exposure to delay, insurance costs, and rerouting risk. Marine fuel buyers reliant on Fujairah-origin bunkers are particularly vulnerable to supply tightening. Charterers with tight schedules and low fuel buffers may see higher operational risk premiums.

Pipelines and buffers that can bypass Hormuz

Regional pipelines and spare capacity that do not cross Hormuz can partially offset seaborne chokepoint risk, though scalability and quality specs may constrain flows. Strategic reserves, including the IEA’s coordinated release, offer a buffer against short-term supply gaps. These mitigations reduce shock severity but do not eliminate logistics friction in marine fuel supply chains.

FAQ about Fujairah port attacks

Is bunkering at Fujairah still suspended and how long will disruptions last?

Barge loadings were halted after storage damage; suppliers curtailed activity. Operations are intermittent. Duration depends on repairs and security conditions.

How are the Fujairah attacks and Strait of Hormuz risks pushing oil above $100?

Supply disruption fears at FOIZ and transit risk through Hormuz tightened sentiment, lifting prices above $100 despite policy buffers and anticipated oversupply.