Oil prices jumped about 3% on Tuesday after renewed Iranian attacks on the United Arab Emirates rekindled supply fears, with the Strait of Hormuz remaining largely shut and several U.S. allies rebuffing President Trump's call to send warships to escort shipping through the vital waterway
Oil surges 3% as Iranian strikes on UAE renew supply fears
FILE- Liberia-flagged tanker, carrying crude oil from Saudi Arabia, that arrived clearing the Strait of Hormuz, at the Mumbai Port in Mumbai, India, Thursday, March 12, 2026.
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Brent crude futures rose by $3.27, or 3.3%, to $103.48 a barrel, while U.S. West Texas Intermediate gained $3.14, or 3.4%, to $96.64 .
Iran launched fresh strikes on the UAE's Shah gas field—where operations remain suspended—and hit Fujairah port, halting loading by state oil company ADNOC .
Fujairah, located just outside the Strait of Hormuz, handles oil volumes equivalent to roughly 1% of global demand .
Strait closure squeezes supply
The Strait of Hormuz, a vital gateway for about 20% of the world's oil and liquefied natural gas trade, remains largely disrupted as the U.S.-Israeli war on Iran enters its third week .
The effective closure has forced the UAE, OPEC's third-largest producer, to reduce output by more than half .
Analysts warn risks remain stark. "It only takes one Iranian militia to fire a missile or plant a mine on a passing tanker to reignite the entire situation," said IG market analyst Tony Sycamore