UAE’s Fujairah oil trading hub targeted by a drone attack, causing large fire

A drone attack at the United Arab Emirates' key oil trading hub of Fujairah triggered a large fire, authorities said on Monday, with no injuries reported.

"Civil Defense teams in the Emirate immediately responded to the incident and are continuing their efforts to control it," Fujairah Media Office said on social media, according to a Google translation.

Oil loading operations at the major oil bunkering hub had been suspended as a result of the drone attack, Reuters reported, citing two unnamed sources.

CNBC has contacted the UAE's ADNOC and is awaiting a response.

The attack comes after aseparate drone strikeand fire at Fujairah on Saturday, underlining the vulnerability of the UAE's only export route thatbypassesthestrategically vitalStrait of Hormuz.

Shipping traffic through one of the world's most important energy choke points has virtually ground to a halt since the U.S.

and Israel launched strikes against Iran on Feb.

28.

Iran has retaliated by targeting ships trying to pass through the maritime corridor, with several incidents reported in recent days.

Fujairah, one of the world's top hubs for storing crude and fuels, is located on the eastern seaboard of the UAE and serves as a key shipping hub for the wider region.

Fujairah sits at the end of the UAE's Abu Dhabi Crude Oil Pipeline (ADCOP), or the Habshan–Fujairah oil pipeline, which bypasses the Strait of Hormuz.

Spanning around 248 miles from onshore oil facilities at Habshan to Fujairah, the pipeline is estimated to handle 1.5 million barrels per day, with a reported total capacity of close to 1.8 million barrels per day.

Iran's Islamic Revolutionary Guard Corps said over the weekend that U.S.

interests in the UAE, including ports, docks and military locations, were legitimate targets.

Iran's state media alsowarnedresidents and workers in the area of the Fujairah, Jebel Ali and Khalifa ports to evacuate as soon as possible, saying U.S.

military forces were present.

The UAE has faced sustained attacks from Iran amid the ongoing Middle East crisis,significantly impacting lifeacross the Emirates.

Indeed, Dubai's International Airport said Monday that it had resumed a "limited" flight schedule after adrone attack hit a fuel depotat the airport, which caused a fire.

Dubai Airport handles over 90 million passengers per year and is ranked the busiest airport globally for international traffic.

Oil prices extended gains on Friday morning.

International benchmarkBrent crudefutures with May delivery traded 3% higher at $106.18 per barrel, while U.S.West Texas Intermediatefutures with April delivery advanced 2% to reach $100.66.

Both contracts have surged more than 50% over the past month, reaching their highest levels since 2022.

— CNBC's Emma Graham contributed to this report.

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