Iran has set fire to a major gas field in the UAE - for the first time since the war began

Authorities in the United Arab Emirates have announced the suspension of operations at the Shah gas field near the Saudi border following an Iranian drone attack. The strike sparked a massive fire at the facility, which is jointly operated by Abu Dhabi's Adnoc National Oil Company and the U.S.-based Occidental Petroleum. Officials said there were no casualties. This is the first time since the beginning of the war when Iran managed to damage an oil and gas production facility in the UAE, Bloomberg reports.

Amid the escalating conflict, the key Emirati port of Fujairah has completely suspended oil shipments. Fujairah is of critical strategic importance for both the UAE and global markets - it is the only route for oil exports from the country bypassing the Strait of Hormuz. On March 17, loading berths of oil terminals as well as an offshore mooring point stopped working at the port, Bloomberg cites data from Inchcape Shipping Services, a shipping agency. This indicates the deterioration of the situation: a few hours earlier it was reported that oil terminals were partially functioning, the agency notes.

The attack on the energy sector coincides with a general increase in instability in the region: last night, the UAE had to close its airspace due to drone and missile strikes. Air traffic was restored in the morning. A day earlier, Iran struck a fuel tank at Dubai's main airport - the world's busiest international air hub - resulting in a thick plume of smoke over the city and a brief suspension of flights, Bloomberg states.

The virtual closure of the Strait of Hormuz has already forced the UAE, Saudi Arabia, Iraq and Kuwait to cut oil production. Qatar, one of the world's top three suppliers of liquefied natural gas (LNG), has completely halted its production. Over the past two weeks, oil prices have soared by about 40%, which triggered a rise in the cost of gasoline in the United States. Diesel, a key fuel for transportation and industry, has risen sharply in price, rising above $5 per gallon for the first time since December 2022.

All of this could be a problem for Republican President Donald Trump ahead of the midterm congressional elections, according to Bloomberg. Asked whether the U.S. could end the war with Iran this week, Trump said, "I don't think so, but it's going to happen soon - it won't be long now."

This article was AI-translated and verified by a human editor