Video: Fujairah fire causes bunker prices spike as Middle East conflict fallout continues

On 3 March, the Fujairah Media Office confirmed fires in two separate X posts. In the most recent update, authorities in the Emirate of Fujairah reported a limited fire at the Port of Fujairah, caused by debris falling after a drone was successfully intercepted by air defence systems. No injuries were reported, and civil defence teams are working to bring the incident under control.

An earlier post referred to a fire in the Fujairah Oil Industry Zone (FOIZ). That post confirmed there were no injuries, the fire was brought under control, and normal operations have resumed.

Bunker Partner bunker trader Alexandros Alexandridis told Riviera that the ongoing crisis, including the effective closure of the Strait of Hormuz, has triggered a significant repricing across the global bunker fuel market.

Global indices show very low sulphur fuel oil (VLSFO) averages climbing roughly 8% to an eight-month high of US$590 per tonne in key ports. Fujairah, Singapore, and Rotterdam all reflected sharp advances as traders incorporated geopolitical risk premiums. Mr Alexandridis added that sentiment across physical and paper markets points to heightened volatility and stretched spreads as supply concerns outweigh fundamentals, even though overall availability is not yet an issue for the physical market.

Following the strikes and disruption of maritime traffic, Brent crude rallied by nearly US$8/bbl in a single session. ICE Brent front-month futures moved toward the low US$80s, embedding a structural risk premium into crude and product prices, Mr Alexandridis said. 

He also added that this Brent strength is feeding directly into bunker prices, particularly in hubs east of Suez, where VLSFO has surged sharply. Over the weekend, prices rose approximately US$59 per tonne in Singapore and Zhoushan and US$40 per tonne in Fujairah.

Mr Alexandridis pointed out that physical availability has not yet deteriorated materially, but war-risk insurance premiums, freight rerouteing costs, and the perception of longer lead times are already tightening delivered bunker economics, particularly for Asian and Middle Eastern stems. 

Meanwhile, recent OPEC announcements indicate planned production increases in the coming months, which could provide a buffer for the physical market by boosting crude availability and tempering extreme price spikes, he noted.

Regional asymmetry

Mr Alexandridis highlighted a key distinction between this episode and past price spikes: regional asymmetry. Brent-linked markets such as northwest Europe and the Mediterranean see crude-driven rallies translate quickly into refined products and bunker fuel price inflation. 

In contrast, the US market remains comparatively stable, supported by solid domestic crude and product inventories and infrastructure that cushions against short-term Gulf disruption.

Even so, as Brent continues to rise, Mr Alexandridis added that the US Gulf Coast and East Coast fuel markets will eventually face upward pressure through export arbitrage, replacement cost dynamics, and adjustments to crack spreads, as refiners respond to higher crude feedstock costs.

Analysts warn that if the Strait of Hormuz remains functionally closed and attacks escalate to physical infrastructure damage, Brent could test US$90-100/bbl or more, pushing bunker prices sharply higher. Mr Alexandridis noted that the intensity of this repricing illustrates both the strategic importance of Hormuz to global energy flows and how rapidly geopolitical risk can reshape marine fuel markets.

Fuel supply at risk

Meanwhile, Kpler has warned that any transit restrictions through the Strait of Hormuz could severely disrupt fuel oil supply. In January alone, the Middle East Gulf exported over 4,200 kt (thousand tonnes), with Singapore, the world’s largest bunkering hub, particularly vulnerable. 

Kpler estimates Singapore Strait imports of HSFO and HSSRFO at 2,861 kt in January 2026, including 741 kt from the Middle East Gulf and 371 kt from other Middle East flows outside the Strait but linked to Fujairah. Russia supplied over 1,200 kt of HSFO and HSSRFO during the same period.

Kpler noted that with such a large share tied to geopolitically exposed origins and chokepoints, the Singapore high-sulphur complex is vulnerable to abrupt supply shocks that can ripple through bunker availability, prompt balances, and freight.