Bunker suppliers in Fujairah, UAE, the Middle East's largest marine fuels hub, have started declaring force majeure following Iran's retaliation strikes after the US and Israel launched attacks against the country at the weekend.
Mediterranean Eastern Enterprise (MEE) served a force majeure notice, saying Iranian "drone attacks have resulted in a significant escalation of hostilities in the wider Gulf region".
Bunker supplier Pearl Marine suspended contractual obligations regarding fuel supply because of "the recent missile strikes on commercial shipping, closure of key transit routes and further geopolitical tensions", according to the force majeure notice seen by Argus.
Other bunker sellers may have declared force majeure too, but this could not be confirmed. Almost all have stopped offering marine fuels for this month, traders and bunker buyers said.
Storage facilities in Fujairah sustained damage on 3 March, with fire breaking out at the port, which was brought under control and extinguished, Fujairah authorities said.
Storage operators suspended operations and restricted staff access because of the regional security situation.
The port remains open but there is very little activity, according to traders and satellite images.
"Some deliveries are carried out in the anchorage area, using existing supplies on the barges," one supplier said. "Once those run out, and if loading from terminals still suspended, then bunkering will stop."
The port is a key supplier of bunker fuel for ships transiting the strait of Hormuz and is the world's third-largest crude and products storage hub.
