Oil prices ease but shipping risks and energy pressures persist for UAE

UAE residents are starting the week with a mixed picture from the Middle East war: more oil is moving through the Strait of Hormuz and crude prices have eased slightly, but attacks on tankers are increasing and heavy fighting in Yemen is putting another vital shipping route at risk.
For people in the Emirates, the practical issues remain regional travel, shipping security and the possibility that continued disruption will keep energy and transport costs elevated.
New shipping data published on Monday offered some encouraging news. Middle East crude exports climbed back above pre-war levels on 14 days during September, with the seven-day average reaching 18.3 million barrels a day at the end of the month. LNG traffic through Hormuz has also increased.
But the recovery comes with a major warning. At least seven tanker incidents were reported over the past week, according to maritime security company Marisks. A tanker was struck by an unknown projectile in the Strait of Hormuz on Sunday, damaging its engine room, although the crew was reported safe. UK Maritime Trade Operations has recorded at least one attack a day around Hormuz or the Gulf of Aden since October 2.
For the UAE, that combination matters: goods and energy may be moving more freely, but shipping remains expensive and unpredictable. Reuters analysis says tanker costs on some Middle East-to-Asia routes have risen dramatically as operators price in the security risk.
The other major development on Monday came in Yemen, where Saudi-backed government forces said they had secured effective control of the Bab Al Mandab Strait after advancing against Iran-aligned Houthi forces.
Government troops, supported by heavy Saudi air strikes, seized key positions around Dhubab, although fighting continued and the Houthis denied that government forces had made the gains claimed. The Houthis also threatened aircraft flying in Saudi airspace.
Bab Al Mandab connects the Red Sea with the Gulf of Aden and is a crucial trade and energy route. For the UAE and other Gulf economies, the prospect of instability simultaneously affecting Bab Al Mandab and Hormuz is particularly significant.
The humanitarian cost is also worsening, with the UN migration agency saying around 184,000 people have been displaced since fighting in Yemen resumed.
There was some relief in energy markets on Monday. Brent crude slipped to about $101.82 a barrel by early afternoon in London as Middle East exports increased and G7 countries prepared to release emergency oil and fuel stocks.
That does not mean the energy crisis is over. Saudi Aramco chief executive Amin Nasser warned on Monday that rebuilding global crude and fuel inventories could take as long as two years.
UAE financial markets nevertheless showed some resilience, with Dubai’s index gaining 0.1% and Abu Dhabi rising 0.4% on Monday.
UAE airports remain open and flights are operating, but Monday brought further delays and cancellations.
Several departures from Dubai International were delayed, including an Emirates Copenhagen service, while flydubai cancelled flights including services to Abha, Moscow and Bangkok. Air Arabia cancelled several Sharjah services to destinations including Kuwait, Bahrain, Gassim, Chattogram and Doha. Etihad reported delays on some services from Abu Dhabi but no major cancellations.
Flydubai’s flights to Israel also remain suspended following last week’s cockpit security incident.
For UAE residents, the advice remains straightforward: check your individual flight before leaving for the airport and be prepared for schedules to change at short notice.