Oil prices top 100 dollars after drone strike on Fujairah port

Monday 16 March 2026 - 16:10

By: Dakir Madiha

Oil prices top 100 dollars after drone strike on Fujairah port

Oil prices climbed above 100 dollars per barrel on Monday as the conflict involving the United States, Israel, and Iran entered its third week, with a drone strike on the port of Fujairah in the United Arab Emirates intensifying concerns about global energy supply disruptions.

Brent crude traded near 105 dollars per barrel while West Texas Intermediate approached 100 dollars, reflecting renewed volatility in energy markets. The surge followed an attack on the Fujairah petrochemical complex, which forced a temporary halt to oil loading operations at the port.

Fujairah serves as the United Arab Emirates’ only oil export route that bypasses the Strait of Hormuz, making the facility strategically important during the ongoing maritime crisis. According to Bloomberg, the drone strike triggered a fire at the complex and interrupted operations early Monday. It was the second attack on the facility within three days after a similar incident briefly disrupted activity on Saturday.

The escalation comes after United States airstrikes on March 13 targeting more than 90 Iranian military sites on Kharg Island, a coral island in the northern Persian Gulf that manages about 90 percent of Iran’s crude oil exports. President Donald Trump said the strikes had destroyed all military targets on the island but deliberately avoided damaging oil infrastructure.

Trump warned that the United States could reconsider that restraint if Iran continues to interfere with shipping through the Strait of Hormuz.

Iran responded by warning that energy infrastructure connected to countries cooperating with Washington could become potential targets.

The attacks have heightened fears of a broader energy crisis. Senior executives from major oil companies including ExxonMobil, Chevron, and ConocoPhillips reportedly warned officials in the Trump administration that instability around shipping routes in the Strait of Hormuz could drive prices significantly higher.

Darren Woods, chief executive of ExxonMobil, cautioned that uncertainty surrounding the waterway could push oil prices further upward if the disruption persists.

To counter the supply shock, the International Energy Agency approved what it described as the largest coordinated release of strategic oil reserves in history. Member countries agreed to release 400 million barrels from emergency stockpiles, with the United States committing 172 million barrels from its Strategic Petroleum Reserve.

Energy analysts warned that the measure may provide only temporary relief. Helima Croft of RBC Capital Markets said supply could remain constrained by the pace at which reserves can be extracted. Neil Quilliam of Chatham House described the move as a temporary solution and warned it carries significant risk if the disruption continues.

Meanwhile, shipping through the Strait of Hormuz remains largely halted. The waterway normally carries about one fifth of global oil supplies but has been severely disrupted since the conflict began on February 28.

Iran’s foreign minister said in a televised interview that Tehran is not prepared to accept a ceasefire and insisted the strait remains technically open but inaccessible to countries considered adversaries.

President Trump has called for an international naval coalition to secure the passage and restore shipping through the strait, but no government has publicly committed forces to the initiative.