"Did the market get 'happy too soon'? Oil and gas fields in the UAE and Iraq attacked for the first time since the war, key substitute port Fujairah hit again."

"Did the market get 'happy too soon'? Oil and gas fields in the UAE and Iraq attacked for the first time since the war, key substitute port Fujairah hit again."

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Overnight, WTI crude oil continued to slide from above $102 to below $94, and U.S. stocks surged as a result. Against a backdrop of headlines on "U.S.-Iran contacts," "Trump signaling willingness to negotiate," and "navigation through the Strait of Hormuz," the market is trying to find the possibility of easing tensions.

However, as the Middle East conflict enters its third week, energy infrastructure around the Persian Gulf has been repeatedly attacked, and the market may be "celebrating too soon."

Attacks Spread to the "Production End" for the First Time

On Monday, the Shah sour gas field in the UAE was attacked by drones, sparking a fire. Authorities in Abu Dhabi later stated that the fire was controlled in the western Rub' al Khali desert region, with no casualties reported.

However, for safety reasons, operations at the gas field have been suspended. Officials are assessing the damage. The Shah field is jointly operated by ADNOC (Abu Dhabi National Oil Company) and Occidental Petroleum (OXY) of the United States.

Meanwhile, a spokesperson for the Iraqi Oil Ministry confirmed that the Majnoon oil field, a core asset in southern Iraq, had also come under attack, but no details of the losses were disclosed.

Veteran energy industry columnist Javier Blas posted on social media platform X that this marks a significant turning point in the conflict.

Javier Blas stated bluntly: "Today saw a further ominous development. For the first time, oil and gas production facilities (not just refineries, terminals, and storage tanks) were successfully targeted." He also revealed, "Saudi Arabia has also suffered a massive drone swarm attack."

Consecutive Attacks on Middle Eastern Energy Facilities

According to CCTV News on Monday, March 16:

  • Fujairah oil facility in the UAE attacked again: On March 16, the Media Office of Fujairah Emirate in the UAE released an official statement confirming that an oil facility at an important port in Fujairah was hit by a drone attack, starting a fire.
  • UAE daily output halved: On March 16, ADNOC was forced to implement a large-scale production shutdown, causing the country’s daily crude oil output to drop by more than half.
  • Attack near Dubai International Airport ignites oil tank: Earlier on March 16, reports from Dubai stated that a drone attack occurred near Dubai International Airport, igniting an oil storage tank. Dubai’s civil defense team successfully controlled the fire, with no casualties reported.
  • Fuel storage facility at Fujairah Port attacked: On the 14th local time, Iran stated that an Iranian drone hit a fuel storage facility at Fujairah Port in the UAE, causing a fire.

The most noteworthy event is that the UAE's main port, Fujairah, was attacked again on Monday, making it the latest in a series of recent attacks on the port. Fujairah is the UAE’s only export route that bypasses the Strait of Hormuz. Insiders revealed that the damage from the latest attack is being assessed. As a precaution, the UAE had already halted production at the Ruwais refinery last week.

Fujairah Port Disrupted, Possible Global Supply Chain Impact

Fujairah Port is a key logistics hub in the Middle East, with huge significance to the current global crude oil market.

Due to the conflict almost shutting down the Strait of Hormuz, Fujairah, located outside the Strait, has become a crucial “lifeline” for the safe export of crude oil and fuel. Attacks on the port directly hit the market's sensitive nerves over crude supply disruptions.

Currently, the tightening energy supply is spreading globally. From India and Australia to Japan, major energy-consuming countries are feeling the pressure of fuel shortages.

The deeper impact is that soaring energy costs are threatening the global tech industry supply chain. The global semiconductor industry is facing potential risks of supply chain disruption, and there is great market concern that, as a critical manufacturing hub, Taiwan may see a sharp rise in energy costs, further pushing up global technology hardware manufacturing expenses.

Risk Warning and DisclaimerThe market carries risks, and investments should be made cautiously. This article does not constitute individual investment advice, nor does it consider the specific investment objectives, financial situation, or needs of any particular user. Users should consider whether any opinions, views or conclusions in this article are suitable for their own circumstances. Investment according to this article is at your own risk. ```