Following the drone attacks and subsequent fires at the critical UAE port of Fujairah on Saturday (March 14), oil extraction, supply, and export activities were briefly suspended. However, according to Reuters, the port's operations have already resumed.

This port is one of the world's most significant hubs for ship bunkering and the export of crude oil and fuel. Due to its strategic oil supply capacity, Fujairah is often considered the UAE's "Strait of Hormuz." The port has faced heightened anxiety following Iranian strikes launched in retaliation against Israeli and US aggression.

Why Fujairah is Globally Significant

According to data from Kpler, the Port of Fujairah exported an average of over 1.7 million barrels of crude and refined oil per day last year. This amount accounts for approximately 1.7% of the total daily global oil demand.

Located on the shores of the Gulf of Oman, the port sits about 70 nautical miles away from the Strait of Hormuz. With the Strait of Hormuz currently effectively closed due to the war with Iran, Fujairah’s importance to the global market has surged.

In 2025, approximately 7.4 million cubic meters (about 7.33 million tons) of marine fuel were sold from this port. This makes it the world’s fourth-largest marine refueling hub, following Singapore, Rotterdam, and China’s Zhoushan.

Importance to the UAE

Before the war began, the UAE produced over 3.4 million barrels of crude oil daily. The country possesses a pipeline with a daily capacity of 1.5 million barrels, allowing oil transport that bypasses the Strait of Hormuz.

The Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah pipeline, transports oil from Abu Dhabi’s oil fields to the Port of Fujairah. From here, the UAE’s popular Murban crude grade is exported, with Asian countries being the primary buyers.

With the Strait of Hormuz largely blocked, any major disruption at Fujairah could force OPEC’s third-largest producer to reduce or halt production.

Impact on Oil and Fuel Markets

Fujairah has a total storage capacity of nearly 18 million cubic meters, establishing it as one of the world's largest centers for oil storage and blending. In the oil industry, "blending" refers to the process of mixing various petroleum components to create final products of specific standards, such as petrol or marine fuel.

Major global storage companies, including VTTI, Vitol, ADNOC, and Vopak, operate within the port. Additionally, the Fujairah Oil Industry Zone (FOIZ) hosts the Middle East's largest commercial refined fuel storage facility.

Source: Geo News