Part of operations resume at key UAE oil hub; European stocks rebound and close higher.

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The UAE’s key oil hub, Fujairah Port, has partially resumed operations after a drone attack, alleviating market concerns about interruptions in Middle Eastern energy supplies and boosting European stocks from decline to rise.

On Monday, the STOXX Europe 600 Index closed up 0.4%, having dropped as much as 0.5% during the session. Previously, European stocks had posted their first two consecutive weekly declines this year, as markets worried the Middle East conflict could last longer than expected.

According to reports, a drone struck the petrochemical area of Fujairah Port—a key UAE oil hub—causing a fire. This is the latest in a series of blows Fujairah has suffered. Just last Saturday, another drone attack at the port interrupted oil loading for about a day.

Subsequently, according to Inchcape Shipping Services, Fujairah’s tanker terminal is currently partially operational and can handle liquid bulk cargo. However, reports citing informed sources say that crude loading operations by Abu Dhabi National Oil Company (ADNOC) remain suspended.

Fujairah Port’s strategic significance stems from its unique geographic location—it is the UAE’s only oil export route outside the Strait of Hormuz. A pipeline directly from Abu Dhabi’s main oil fields terminates here, making it the primary export terminal for UAE Murban crude, boasting an oil storage capacity of over 70 million barrels, and serving as a major fuel bunkering center for ships.

According to CCTV News, Trump is pressuring all parties to help reopen the Strait of Hormuz. It was also revealed that the US is in dialogue with Iran, which has somewhat boosted market sentiment. Stephan Kemper, Chief Investment Strategist at BNP Paribas Wealth Management, said:

Trump is under immense pressure and needs to resolve this issue as soon as possible.

Stephan Kemper identified missiles, the market, and the midterm elections as the three key factors driving Iran’s military actions toward a short-term resolution.

IEA releases record reserves, supply tightness remains main market theme

The Paris-based IEA said last week that the current conflict has caused the largest supply disruption in oil market history, emphasizing the critical importance of reopening the Strait of Hormuz.

The agency is currently coordinating a record release of 400 million barrels of strategic reserves, with supplies in Asia already arriving first.

Among Persian Gulf oil producers, only the UAE and Saudi Arabia can partially bypass the Strait of Hormuz for oil exports.

Saudi Arabia is accelerating efforts to increase export capacity along the Red Sea coast to fill the gap. However, analysts believe that continued attacks on Fujairah show even this alternative route is facing increasingly severe security challenges.

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