Largest oil collapse in history: Iran strikes UAE oil ports and urges civilians to evacuate — Reuters

Largest oil collapse in history: Iran strikes UAE oil ports and urges civilians to evacuate — Reuters

Photo: EPA

Reuters reports that Iran attacked oil terminals in the United Arab Emirates, urged civilians to evacuate areas near ports, and warned of further strikes on American facilities in the Persian Gulf.

The conflict between the United States and Iran has entered its third week and has effectively expanded beyond direct confrontation between the two countries. On Saturday, March 14, oil terminals in Fujairah caught fire following a drone attack. Tehran declared that it had a legitimate right to strike ports and “American hideouts” in the Persian Gulf.

Fujairah is one of the world’s key oil hubs: about 1 million barrels per day of Murban crude pass through the terminal—roughly 1% of global demand. After the attack, some oil loading operations were halted as thick black smoke rose over the port.

Iranian military officials called on civilians to leave areas near major ports while tensions remain high. Several strategic facilities were named as potential targets, including:

  • Port of Jebel Ali
  • Khalifa Port
  • Port of Fujairah
  • Iran also warned it could target branches of American banks in the Persian Gulf.
  • Strike on Kharg Island

A day earlier, US forces struck more than 90 military targets on Kharg Island, Iran’s main oil export terminal through which around 90% of the country’s oil exports pass. According to United States Central Command (CENTCOM), the strikes destroyed naval mine depots, missile storage sites, and other military infrastructure.

President Donald Trump claimed the United States had “completely destroyed” the island’s military targets, though Iranian officials downplayed the scale of the damage while warning they could deploy “more powerful weapons” in response.

Oil market disruption

After three weeks of fighting, more than 2,000 people have reportedly been killed, most of them Iranian citizens. The confrontation has triggered what analysts describe as the largest disruption of oil supplies in recorded history, with shipping in the region that supplies about one-fifth of global oil output largely halted and prices surging.

Energy analyst Helima Croft of RBC Capital Markets said the attacks show that the Islamic Revolutionary Guard Corps is signaling that there are no safe havens in the conflict.

UAE caught in the middle

The United Arab Emirates has found itself in a difficult position. Officials in Gulf Arab capitals have expressed frustration at being drawn into a conflict they neither initiated nor supported.

Presidential diplomatic adviser Anwar Gargash said Iran’s actions reflect its inability to confront US and Israeli strikes directly, accusing Tehran of instead targeting Gulf Arab states. Meanwhile, an IRGC spokesperson insisted that Iran considers it legitimate to strike “launch points of the American enemy” in ports, docks, and military sites in certain UAE cities.

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