WANA (Apr 16) – The UAE’s Port of Fujairah, once a strategic refueling hub for tankers, has seen its fuel sales plummet by 70% and lost its regional standing due to the twin blows of drone attacks and the closure of the Strait of Hormuz.

 

The U.S.-Israeli war against Iran has dealt a heavy, and perhaps irreparable, blow to one of the United Arab Emirates’ most profitable industries.

 

The Port of Fujairah, known as a strategic hub and an alternative for ship refueling (bunkering) due to its location outside the Strait of Hormuz, is now facing an unprecedented decline in sales and has effectively lost its position in the region.

 

Reports indicate that marine fuel (bunker) sales at the Port of Fujairah plunged in March to approximately 158,852 cubic meters (equivalent to 157,300 tons). This figure, the lowest recorded since 2021, represents a decrease of more than 70% compared to the same month last year.

 

From Drone Attacks to Economic Siege

Two key factors lie behind this economic collapse in Fujairah:

 

Drone Attacks and Infrastructure Destruction: On March 14 the Fujairah industrial zone was targeted by a drone attack, causing a massive fire at the port’s oil storage facilities. This incident halted loading operations and created a serious disruption in the fuel supply chain.

 

Oil Transit and Reduced Demand: Given the effective closure of the Strait of Hormuz, tanker traffic in the Persian Gulf has been severely restricted. This has led to a sharp decrease in refueling demand in the region.

 

Analysts believe that Fujairah is no longer the safe and strategic hub it once was, as the high risk of insecurity has driven away investors and shipping companies.

 

Evidence shows that refueling demand has shifted to other global ports, particularly Singapore. This redirection deals a long-term blow to the UAE’s commercial position on the world energy map.