The incident came as Brent fell 0.35% to $107.77 and WTI 0.57% to $101.31, with shipping near standstill under the Strait of Hormuz blockade.
Donald Trump said the US would launch "Project Freedom" on Monday to help stranded civilian ships leave the waterway, backed by destroyers, aircraft, unmanned platforms and 15,000 service members.
Markets were also weighing OPEC+'s planned 188,000 barrel-per-day output increase and warnings that sustained Brent around $125 could tip the global economy into recession.
Can America's 'Project Freedom' break the Hormuz blockade, or will it ignite a wider war and economic collapse?
With food and fuel prices soaring, can the US military overcome Iran's hidden naval mines to reopen this critical waterway?
Fujairah Tanker Attack Highlights Vulnerability of Alternative Oil Routes During Strait of Hormuz Crisis
Overview
On May 3, 2026, a commercial tanker near Fujairah, UAE, was attacked by projectiles, causing minor damage but no injuries. This incident occurred amid an intense conflict triggered by a U.S.-Israeli airstrike that killed Iran's Supreme Leader, leading Iran to close the Strait of Hormuz and the U.S. to impose a naval blockade on Iranian ports. The resulting dual blockade slashed oil transit by over 90%, spiking global prices and forcing reliance on alternative routes like the UAE's Habshan-Fujairah pipeline. In response to escalating threats, the U.S. launched Operation Project Freedom to escort neutral vessels, but diplomatic efforts remain stalled, leaving the region in a fragile stalemate with high risks of further escalation.