Oil prices climbed to a two-week high on Monday after a drone attack targeted the United Arab Emirates’ Barakah nuclear power plant, intensifying concerns that the Iran conflict could further disrupt global energy supplies.
Brent crude futures rose $2.01, or 1.84 percent, to $111.27 per barrel after briefly crossing the $112 mark, the highest level since May 5. US West Texas Intermediate crude increased $2.33, or 2.21 percent, to $107.75 per barrel after touching $108.70 earlier in the session.
The latest rally comes as hopes for a diplomatic breakthrough in the Iran conflict continue to weaken following stalled international talks and growing fears of broader regional escalation.
According to Reuters, Emirati authorities confirmed that the Barakah nuclear power plant came under a drone attack, while Saudi Arabia said it intercepted three drones entering from Iraqi airspace.
The developments have heightened concerns over the security of Gulf energy infrastructure and shipping routes linked to the Strait of Hormuz, one of the world’s most critical oil transit chokepoints.
Analysts said the attacks signaled increasing risks of proxy escalation if the United States or Israel carries out further military action against Iran.
US President Donald Trump is reportedly expected to discuss military options regarding Iran with senior national security advisers later this week, adding further uncertainty to global energy markets.
Oil prices also received support after the Trump administration allowed the lapse of a sanctions waiver that had previously enabled countries including India to continue purchasing Russian seaborne oil.
Both benchmark oil contracts gained more than 7 percent last week as traders priced in growing geopolitical risks and fears of supply disruptions across the Middle East.
