Oil jumps 3% as Iranian strikes on UAE stoke supply fears
Oil prices surged roughly 3% on Tuesday after renewed Iran attacks on the United Arab Emirates heightened concerns over global supply. The Strait of Hormuz remains largely closed, and several U.S. allies declined Donald Trump’s call to send warships to escort shipping through the critical waterway.
Brent crude rose by $3.27 (3.3%) to $103.48 a barrel, while U.S. West Texas Intermediate gained $3.14 (3.4%) to $96.64 a barrel.
Iran targeted the UAE’s Shah gas field—currently suspended—and Fujairah port, halting loading by state oil company ADNOC. Fujairah handles oil volumes equivalent to roughly 1% of global demand, making it a critical chokepoint.
The Strait of Hormuz, a gateway for around 20% of the world’s oil and LNG trade, remains disrupted as the U.S.-Israeli conflict with Iran enters its third week. UAE, OPEC’s third-largest producer, has cut output by more than half. Analysts warn the situation remains volatile, with even a single missile strike or mine on a tanker capable of triggering further supply shocks.
