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A drone struck the Fujairah Oil Industry Zone in the United Arab Emirates (UAE) on Monday, sparking a fire at the petroleum industrial zone and forcing the suspension of oil loading operations for the second time in three days, as Brent crude climbed above $106 a barrel on heightened supply fears.
Oil loading at Fujairah was halted on Monday as a precautionary measure while damage from the latest strike was being assessed, according to people familiar with the matter who asked not to be identified as they are not authorized to speak to Bloomberg.
"A large fire broke out in the Fujairah Oil Industries Zone as a result of being targeted by a drone, with no injuries reported," Fujairah authorities said, adding "efforts continue to bring it under control".
Two sources told Reuters that oil loading operations at the port have been suspended.
Operations at Fujairah had resumed on Sunday following a separate drone strike over the weekend that had temporarily halted loading.
The Fujairah industrial zone has been attacked several times during the conflict, including on March 3.
Fujairah, located on the Gulf of Oman just outside the Strait of Hormuz, is typically a critical exit point for about 1 million barrels per day of the UAE's Murban crude, a volume equivalent to roughly 1% of global demand.
The port sits at the end of a pipeline connecting it to Abu Dhabi's main oil fields, making it the UAE's only oil export route that bypasses the strait.
Fujairah has taken on increased strategic significance for the UAE and global energy markets because of its position outside the Strait of Hormuz, which has been all but closed since the U.S.-Israeli war with Iran began.
The port is also one of the world's largest bunkering hubs for crude oil and refined fuels.
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