Iran launched a coordinated missile and drone assault on the United Arab Emirates on Monday, striking an oil hub at Fujairah and pushing global crude prices to their highest levels in years. The attack sent Brent crude futures up nearly 6% to close at $114.44 per barrel, while U.S. West Texas Intermediate settled at $106.42, a gain of more than 4%.
The UAE's defense ministry said its air defense systems engaged 12 ballistic missiles, three cruise missiles and four drones. Three people were injured. A fire broke out at Fujairah following a drone strike, according to Reuters. Iranian drones also targeted a vessel affiliated with the UAE's state oil company ADNOC. The UAE condemned the attacks on commercial ships as an act of aggression.
The assault is the latest flashpoint in a weeks-long standoff over the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world's oil supply passes. Iran blockaded the strait weeks ago, triggering what U.S. officials have described as the largest oil supply disruption in history. President Donald Trump on Sunday announced the U.S. would guide civilian ships through the passage under an operation called Project Freedom.
The mission is backed by U.S. guided-missile destroyers, more than 100 aircraft and unmanned platforms operating under U.S. Central Command. But Axios reported that the scope of the operation is more limited than initial statements suggested. U.S. officials told the outlet there are no plans for full naval escorts. Instead, the Navy will advise ships on mine avoidance and stands ready to intervene if vessels are attacked directly. One official said the military has been authorized to strike immediate threats to ships crossing the strait.
The operation saw its first confrontation Monday. Admiral Brad Cooper, who leads U.S. Central Command, told reporters that American forces destroyed six small Iranian boats attempting to interfere with shipping. CENTCOM said two U.S.-flagged merchant vessels had successfully transited the strait by Monday afternoon. Iran's military warned it would attack any U.S. warship that approaches the waterway. Iranian state media reported that the Revolutionary Guard struck a U.S. warship with two missiles. CENTCOM denied the claim. "No U.S. Navy ships have been struck," the command said in a social media post.
Separate attacks on commercial vessels were also reported Monday. A tanker was hit by projectiles north of Fujairah and a bulk carrier was struck by small craft off Iran's coast, according to incident reports from the United Kingdom Maritime Trade Operations Centre.
The UAE said it would not be intimidated by Iran's actions. The crisis has put the fragile ceasefire agreement between Tehran and Washington under severe strain, with both nations exchanging fire across the Gulf for the first time in the current standoff.
