Fujairah bunker fuel sales halve as Iran war chokes Gulf shipping

Bunker fuel sales at the United Arab Emirates' Fujairah port more than halved in the first half of 2026 compared with the same period a year earlier, as the US-Iran conflict choked shipping activity near the Strait of Hormuz and drove vessels away from the region's largest bunkering hub.

Marine fuel sales, excluding lubricants, totaled about 1.63 million metric tons in the first six months of 2026 at Fujairah, down sharply from 3.66 million cubic meters recorded in the first half of 2025. Sales hit a fresh record low in June, falling to 88,659 cubic meters from 97,727 cubic meters in May, according to data from the Fujairah Oil Industry Zone. Sales of 380 CST VLSFO, the port's most traded bunker grade, plunged 90.4% year on year in June to a record low of 34,590 cubic meters.economictimes+3

War and Shipping Disruptions

The collapse tracks the broader upheaval in Gulf shipping since the United States and Israel began military operations against Iran and its allies in late February 2026. In early March, at least 200 ships — including oil tankers and liquefied natural gas carriers — were stranded at anchor off the UAE coast as the Strait of Hormuz effectively shut down, according to Reuters ↗ 2.92%. Bunker fuel prices at Fujairah surged, further suppressing demand and pushing vessels toward alternative fueling hubs.wikipedia+2

The disruptions have persisted for months. In May, a ship anchored off the UAE was seized and taken toward Iran while a cargo vessel near Oman sank after an attack. In June, the United Nations paused evacuation of ships through the strait after another vessel was struck. On July 14, Iran attacked two UAE-flagged tankers, the Mombasa and Al Bahiyah, causing fires on board, according to the Jerusalem Post.youtube+3

A Hub Under Pressure

Fujairah, situated on the Gulf of Oman just outside the Strait of Hormuz, had grown into the Middle East's premier bunkering and oil storage center. Even before the war, sales had begun softening — first-half 2025 volumes were already down 5.2% from 2024. But the conflict accelerated the decline, as insurers raised war-risk premiums and shipping lines rerouted traffic away from the Gulf altogether.portnews+1

Fuel oil inventories at the port have fluctuated sharply, rising 33% in the week ending June 22 to 6.846 million barrels — the highest since late April — as product piled up with fewer ships calling to refuel. Al Jazeera reported in early July that the global shipping industry is already eyeing a return to pre-war patterns once a durable ceasefire takes hold, but with hostilities still ongoing, Fujairah's recovery remains uncertain.aljazeera+1