Fuel prices surge 5% after Iranian strike on UAE’s Fujairah oil facility

The incident has raised fresh fears about oil supply stability in the Middle East.

The reported drone strike on the Fujairah Oil Industry Zone triggered immediate concern among traders. The site is considered an important energy hub in the United Arab Emirates.

Following the reports, Brent crude prices jumped sharply during trading. Prices briefly crossed $119 per barrel as markets reacted to rising geopolitical tension.

The sudden increase reflected growing anxiety about possible disruption in global oil supply routes. The Gulf region plays a major role in worldwide crude exports.

Authorities in the United Arab Emirates have not confirmed any major damage at the facility. Regional security sources are still assessing the situation and its impact.

Despite uncertainty, market reaction was fast and strong. Oil prices moved up within minutes as news spread across trading platforms and media.

Read more: Major fire erupts at UAE’s Fujairah oil complex after Iran drone strike

Later, Brent prices eased slightly back to around the $113–115 range. However, analysts warned that prices could again rise above $120 if tensions continue.

Energy experts said the market is highly sensitive to developments in the Middle East. Key routes like the Strait of Hormuz are especially important for global oil transport.

Even unconfirmed reports of attacks often lead to sudden price movements. Traders usually react quickly to any potential risk in supply chains.

Analysts also noted a difference between spot prices and futures markets. While immediate prices rose sharply, longer-term contracts showed more stable movement.

Experts say this reflects uncertainty about whether the situation will lead to long-term disruption. Markets are unsure if the risk is temporary or part of a larger escalation.

Oil markets are reacting strongly to every new development in the region. If tensions continue, fuel prices may remain unstable in the coming days.