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Oil giant ADNOC storage facility near the airport in Abu Dhabi, capital of the United Arab Emirates, on January 17, 2022.
AFP | Getty Images
DUBAI, United Arab Emirates — The United Arab Emirates vowed to retaliate for a deadly attack by Houthi militants in its capital Abu Dhabi on Monday that killed three people, as fresh tensions in the region pushed oil prices to their highest in seven years .
“We condemn the Houthi militias’ attack on civilian areas and installations on UAE soil today,” the UAE’s foreign ministry said in a statement after the attack. “We reiterate that those who carry out unlawful attacks on our country will be held accountable. “
The ministry added that the UAE “reserves the right to respond to these terrorist attacks and escalation of crime.”
Brent crude futures, the international benchmark, rose 1.6% to $87.89 a barrel on Tuesday morning, while U.S. West Texas Intermediate crude futures rose more than 2% to $85.56 in early trade. Both oil contracts hit their highest levels since October 2014 after a subdued session on Monday as U.S. markets were closed for a public holiday.
Energy analysts attribute bullishness in oil prices in recent weeks to signs of a tightening market and persistent concerns about falling oil prices. Russia invades Ukraine. The growing threat of a further deterioration in the security environment in the Middle East provided further support for oil prices, prompting some to predict a recovery in the triple digits.
The most significant attack on the UAE
Yemen’s Houthi rebels claimed responsibility for the attack on Monday morning that set off a fire that caused three oil tankers to explode near a storage facility of state oil company ADNOC. Abu Dhabi Police said in a statement that the fire started at a construction site near the Moussafah Industrial Zone and Abu Dhabi International Airport in the UAE capital, adding that they believed the attack was carried out by drones.
A Pakistani and two Indian nationals were killed in the attack. Authorities said Monday that six other people were injured and were being treated for minor and moderate injuries.
Attacks by Houthi rebels, who have been fighting the UAE in Yemen since the Saudi-led coalition began bombing the country in 2015, are common in Saudi Arabia, but this is the most significant attack by the Houthis in the UAE and is the largest since 2018. It was the first of its kind in the country in years.
The UAE largely withdrew from the conflict in Yemen in 2019 but continued to support the country’s forces fighting the Houthis, which receive financial and military support from Iran.
The UAE is OPEC’s third-largest producer, while ADNOC, the Abu Dhabi National Oil Company, controls oil operations in Abu Dhabi, home to the vast majority of the state’s crude. The UAE is the seventh largest oil producer in the world, producing just over 4 million barrels per day.
—CNBC’s Sam Meredith contributed to this report
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