Drone Strikes Disrupt Key Oil and Ammonia Ports in Middle East

The recent escalation of drone strikes in the Middle East has significantly disrupted key export routes for oil and ammonia, raising concerns about supply stability in a region already grappling with geopolitical tensions. On March 16, 2026, the Fujairah port in the United Arab Emirates resumed oil loadings after a temporary halt due to a drone strike that occurred on March 14-15. This attack caused a fire in the petrochemicals complex, prompting officials to pause operations as a precautionary measure.

Fujairah port is crucial for both the UAE and global markets, particularly because it lies outside the Strait of Hormuz, which has been increasingly perilous due to ongoing conflicts. The port serves as a major hub for crude oil and fuels, boasting a capacity of over 70 million barrels. With oil prices soaring above $100 a barrel, the implications of this attack are profound. A person familiar with the situation, who wished to remain anonymous, confirmed that oil loadings had resumed but highlighted the acute risks posed to regional supplies.

The drone strike on Fujairah follows a warning from Iran’s military, which declared that ports including Fujairah, Jebel Ali, and Port Khalifa had become legitimate targets due to the presence of U.S. military forces in civilian areas. This warning underscores the heightened tensions in the region and the potential for further disruptions.

Meanwhile, the Omani port of Salalah, another vital export terminal, has faced its own challenges. On March 11, 2026, Salalah was closed until further notice after a drone strike targeted fuel tanks at the facility. This closure means that no ammonia can be exported from the Middle East, a region that previously led global ammonia exports. According to a customer advisory, all terminal operations at Salalah have been temporarily suspended.

Salalah port is particularly significant as it is the only Middle Eastern port capable of exporting ammonia since the onset of the ongoing war. OQ Trading, which uses Salalah to export ammonia from the Salalah Methanol Company, saw its scheduled ammonia loading on the 26,000-metric ton gas carrier Gas Ammon canceled. Instead, the ship will only load bunker fuel upon its arrival at the port.

Market participants have expressed concern that the closure of Salalah port could severely impact ammonia exports from the region. In 2025, the Middle East exported 4.28 million metric tons of ammonia, primarily from Saudi Arabia, Iran, and Qatar. However, the ongoing conflict has caused significant disruptions in production, with Qatar Energy halting ammonia production entirely following a drone strike on March 4, 2026. Saudi Arabian producers are also operating at reduced or unclear rates, further complicating the situation.

As the only ammonia export terminals outside the Strait of Hormuz, Oman’s ports of Sohar, Sur, and Salalah are under immense pressure. Salalah, in particular, exports approximately 330,000 metric tons of merchant ammonia annually, making its closure a critical blow to the ammonia market. The situation has compelled shipowners to reconsider their routes, with many reluctant to navigate through high-risk areas due to increased insurance premiums and safety concerns.

Moreover, the ongoing drone strikes and military threats have raised the stakes for shipping companies, as three ammonia carriers remain stuck inside the Strait of Hormuz after loading in Saudi Arabia and Qatar. A fourth ship, returning from a delivery to Asia, has opted to wait outside the high-risk area rather than risk sailing to reload in Saudi Arabia.

The International Energy Agency (IEA) has noted that the ongoing conflict has led to the largest supply disruption in the history of the oil market, emphasizing the urgent need to reopen the Strait of Hormuz. In response to the crisis, the IEA is coordinating the release of a record 400 million barrels of oil from its member countries' emergency stockpiles, with immediate supplies made available in Asia.

The ramifications of these events are already being felt across global markets. The drone attacks not only threaten the UAE’s only export route outside the Strait of Hormuz but also highlight the fragile nature of regional oil and ammonia supplies. As tensions continue to escalate, the stability of these critical supply chains remains in jeopardy.

With the situation evolving rapidly, both Fujairah and Salalah ports are at the forefront of a broader crisis affecting the Middle East's energy landscape. Stakeholders in the oil and ammonia markets are closely monitoring developments, as the potential for further attacks looms large. As global demand for these resources persists, the need for secure and reliable export routes has never been more critical.

In conclusion, the drone strikes on Fujairah and Salalah ports have underscored the vulnerabilities of the Middle East's energy infrastructure amid rising geopolitical tensions. The impact on regional and global supply chains is profound, and industry experts warn that without a de-escalation of hostilities, further disruptions could follow.