Oil prices surge after Iranian missiles target the UAE

Brent crude’s price has moved higher following a fresh flareup in the Persian Gulf, drawing the UAE deeper into the US-Iran conflict – now entering its third month.

IMAGE: Bunker barge at berth in Fujairah, UAE. Port of Fujairah

Brent's price has risen above $110/bbl as tensions around the Strait of Hormuz continue to escalate and the four-week truce between Washington and Tehran loses momentum.

Yesterday, Iranian missiles and drones struck the UAE, including Fujairah port– a major Asian bunker hub, according to reports. The Fujairah Oil Industry Zone was hit by a drone, but the scale of the damage is still uncertain, a trader told ENGINE.

The attack comes shortly after an Iranian drone struck an oil tanker operated by the UAE’s state-owned ADNOC in the blockaded Strait of Hormuz, Saudi Arabia’s state-owned news agency Al Arabiya reported.

Two drones hit the MV Barakah off Oman’s coast, Al Arabiya reported. The incident is notable, given the UAE’s status as a key US ally.

Fujairah has come under repeated attacks since the US-Israel conflict with Iran began on 28 February. “The U.S. should be wary of being dragged back into quagmire by ill-wishers. So should the UAE,” Iran’s Foreign Minister Abbas Araghchi said on social media platform X.

Meanwhile, US President Donald Trump said on Truth Social that the US military has “shot down” seven Iranian boats while intercepting a range of Iranian drones and missiles, as it continued to facilitate the safe passage of commercial vessels through the Strait of Hormuz.

The escalation comes after the US Central Command (CENTCOM) unveiled “Project Freedom,” a new plan to safely escort commercial vessels via the region.

Iran's Fars news agency reported that two missiles struck a US Navy vessel near Jask in the Gulf of Oman, outside the Hormuz Strait, though the claim was denied by the US CENTCOM.

By Aparupa Mazumder

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