On March 9, Singapore-listed Sembcorp Industries issued a statement refuting reports that its Middle East asset, specifically the Fujairah F1 independent water and power plant (IWPP) in the United Arab Emirates (UAE), where it owns a 40% stake, was attacked.
Slightly more than a week after Israel and the US commence assaulting Iran, the Strait of Hormuz, a narrow waterway between Iran and Oman, is effectively unnavigable as maritime insurers have stopped providing coverage for vessels travelling through the Persian Gulf amid increasing risk of ships being attacked.
With the disruption of shipping lanes through the Strait of Hormuz, where around 20% of the world’s oil and gas supply flows through, fuel prices have surged on fears of a global supply shortage. In particular, oil has jumped from below US$70 per barrel before the attacks to more than US$110 on March 9. In addition to vessels, the wider region is experiencing turmoil as Iran retaliates, attacking US military bases and other targets in the region, including infrastructure assets.
