On the 18th day of the war in Iran, oil prices rose on Tuesday in response to intense Iranian strikes on Gulf countries. The latest attack hit an oil industrial zone in the United Arab Emirates.
Already targeted the day before, the Fujairah oil industrial zone, located on the UAE’s east coast, was struck again by a drone attack that caused a fire.
This oil hub is essential for the country, as it allows part of the barrels to bypass the Strait of Hormuz, where maritime transport is currently nearly paralyzed. Around 20% of global oil production usually passes through this strategic route.
The crisis "may be shifting from a maritime transport crisis (...) to a supply crisis, in which energy infrastructure across the Gulf becomes a target of Iranian attacks,” said Kathleen Brooks, analyst at XTB.
At around 10:45 GMT (11:45 in Paris), the price of North Sea Brent crude for May delivery rose by 2.83% to $103.05 per barrel.
Its U.S. equivalent, West Texas Intermediate (WTI) for April delivery, gained 3.04% to $96.34 per barrel.
South Korea, which has major refining capacity, announced overnight that it would introduce restrictions on exports of refined products,” noted Arne Lohmann Rasmussen of Global Risk Management.
China had already announced similar measures last week, as "countries are prioritizing their own supply security,” the analyst added.
He also pointed out that prices for certain Middle Eastern crude grades (such as Murban or Oman) have surged significantly—exceeding $150—because "refineries are generally configured for very specific crude characteristics.”
Meanwhile, U.S. President Donald Trump’s request for assistance from several countries to secure maritime traffic in the Strait of Hormuz through military means has so far received little support.
However, Iraq—highly dependent on its oil revenues—is in contact with Iran to allow its tankers to pass through the Strait of Hormuz, according to the Iraqi oil minister. The country’s production remains heavily constrained due to the disruption in the strait.
Source: AFP