UAE Under Attack Again? Massive Explosions Rock Dubai Oil Facilities, Causes Heavy Damage, Watch

MASSIVE DUBAI EXPLOSION: New explosions reportedly rocked parts of the United Arab Emirates, as regional instability continues to grow, amid the ongoing conflict in the Persian Gulf, reportedly linked to Iran. Loud blasts, plumes of smoke, and emergency response efforts were reported around the oil-related infrastructure and port areas in both Dubai and Fujairah. The UAE police have not issued a formal statement on the incident so far.

Dubai rocked by fresh blasts? 

The renewed unrest follows unrest in the region being further complicated by tensions between Tehran, Washington and Gulf countries. In the past couple of weeks, missile and drone attacks have hit energy infrastructure, tankers and strategic oil hubs across the UAE, including Fujairah, one of the world’s top oil stores and exporters.

Frequent attacks on the oil supplies of the Gulf could have a significant effect on world crude prices and energy markets, analysts say. Brent has already seen steep swings as concerns intensify over potential supply disruptions from near the Strait of Hormuz, where a big percentage of global oil flows pass.

Iran’s proposal to end the war

Iran’s proposal to end war with the U.S. and reopen the Strait of Hormuz was legitimate and generous, Foreign Ministry Spokesperson Esmaeil Baghaei said on Monday, adding that the U.S. continues to uphold unreasonable and one-sided demands.

“Our demand is legitimate: demanding an end to the war, lifting the (U.S.) blockade and piracy, and releasing Iranian assets that have been unjustly frozen in banks due to U.S. pressure,” Baghaei said.

“Safe passage through the Strait of Hormuz and establishing security in the region and Lebanon were other demands of Iran, which are considered a generous and responsible offer for regional security.”

How are the stocks getting affected amid the raging war? 

Most Gulf stock markets ended lower on Monday amid signs that U.S.-Iran talks have stalled, leaving the crucial Strait of Hormuz effectively closed. U.S. President Donald Trump on Sunday dismissed Iran’s response to a U.S. proposal for peace talks aimed at ending their war, calling Tehran’s demands “totally unacceptable.”

Iran’s proposal called for a comprehensive end to the war, sanctions relief, reparations and recognition of its control over the strait, Iranian media reported. Iran has effectively closed the strait since the war began in late February, disrupting a vital corridor that typically carries about a fifth of the world’s oil and gas.

Dubai’s main share index <.DFMGI> fell 1.4%, hit by a 1.8% drop in blue-chip developer Emaar Properties <EMAR.DU> and a 1.7% slide in toll operator Salik <SALIK.DU>. Budget airline Air Arabia <AIRA.DU> declined 2.1%.

While relative calm has offered some support to sentiment, the lack of progress in U.S.-Iran talks is keeping investors cautious and could weigh on stocks, said Joseph Dahrieh, managing director at Tickmill.

(With Inputs From Agencies)

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