Iran blames US for fire at key UAE port as oil spikes 5%

An Iranian military official on Monday blamed "US military adventurism" for a large fire at the United Arab Emirates' key Fujairah oil port, denying any premeditated Iranian attack and escalating a war of words that sent global oil prices sharply higher. The UAE and US allies, however, described the incident as a direct attack by Iran involving at least 19 missiles and drones, marking the most dangerous flashpoint since a fragile ceasefire began in April.

"The event at Fujairah was caused by the adventurous behavior of the US military, which tried to open an illegal channel for ships through the Strait of Hormuz's forbidden waterway," an unnamed Iranian military official told state media. "The US must be held responsible."

The accusation followed a chaotic morning in which the UAE's defense ministry reported intercepting 12 ballistic missiles, three cruise missiles, and four drones. The attack on the Fujairah Oil Industry Zone—a critical storage and loading hub outside the Strait of Hormuz—injured three Indian nationals, according to the Indian Embassy in Abu Dhabi. The benchmark Brent crude oil price surged more than 5% to trade above $115 a barrel on the news.

This incident threatens to unravel a US-brokered ceasefire that had largely held since early April, a period that followed Iran's blockade of the Strait of Hormuz through which nearly 20% of the world's oil supply normally passes. The renewed conflict puts Washington's "Project Freedom," a naval mission to escort commercial vessels through the strategic chokepoint, under intense pressure.

Conflicting Reports Deepen Crisis

The attack on Fujairah was not an isolated event. The UK Maritime Trade Operations reported a UAE tanker was hit by projectiles just seven nautical miles from the port. Separately, South Korean officials are investigating reports that one of their commercial vessels was struck in the area.

The information war is running parallel to the military actions. While the US military's Central Command claimed two US-flagged merchant vessels successfully transited the Strait of Hormuz on Monday, Iran's Islamic Revolutionary Guard Corps called the assertion "complete lies." The IRGC has maintained it has full control over the waterway and has previously fired on US warships in the area.

Economic Fallout and Regional Escalation

The UAE, a close partner of the US and Israel, condemned the strike as a "treacherous" attack and warned it reserves its "full and legitimate right" to respond. The escalation has already had economic consequences, with the UAE's education ministry shifting all schools to remote learning for the remainder of the week as a precautionary measure.

The attack highlights the vulnerability of global energy supplies to the ongoing conflict. While the Fujairah port is located on the Gulf of Oman, allowing the UAE to bypass the Strait of Hormuz, a direct hit on its infrastructure demonstrates that no facility is entirely safe from the conflict's reach. The Gulf Cooperation Council (GCC) issued a statement condemning the attack and expressing full solidarity with the UAE.

This article is for informational purposes only and does not constitute investment advice.