Global oil prices climbed sharply on Monday, reaching their highest levels in nearly two weeks, as escalating tensions in the Middle East intensified fears of supply disruptions across the Gulf region.
Brent crude futures rose by $2.01, or 1.84 percent, to $111.27 per barrel by 0432 GMT, after earlier touching $112 — the highest level since May 5. Meanwhile, US West Texas Intermediate (WTI) crude gained $2.33, or 2.21 percent, to trade at $107.75 per barrel, after hitting an intraday high of $108.70, its strongest level since April 30.
Both benchmark contracts had already surged more than 7 percent last week as hopes for a diplomatic breakthrough in the Iran conflict faded, fueling concerns over the security of oil shipments through the strategic Strait of Hormuz.
Market sentiment worsened following reports of a drone attack targeting the UAE’s Barakah nuclear power plant, alongside rising regional tensions involving Saudi Arabia and Iran. Emirati authorities confirmed that investigations were underway to determine the source of the attack, describing it as a “terrorist act” and affirming the UAE’s right to respond.
Saudi Arabia also reported intercepting three drones that entered its airspace from Iraq, warning that it would take all necessary measures to safeguard its sovereignty and national security.
Analysts believe the attacks signal a dangerous escalation in regional instability. Tony Sycamore, market analyst at IG, said the drone strikes serve as a warning that any renewed US or Israeli military action against Iran could trigger further attacks on Gulf energy infrastructure by Iranian-backed groups.
Adding to market anxiety, US President Donald Trump is reportedly set to meet senior national security advisers on Tuesday to discuss possible military options concerning Iran, according to Axios.
Oil markets also found support after the Trump administration allowed a sanctions waiver on Russian seaborne oil exports to expire. The waiver had temporarily enabled countries, including India, to continue purchasing Russian crude.
“Fears of renewed strikes on Iran have worsened supply concerns, while the expiration of the Russia sanctions waiver added further pressure on the market,” said Vandana Hari, founder of Vanda Insights.
With geopolitical risks mounting and uncertainty surrounding global oil supplies increasing, analysts warn that crude prices could remain highly volatile in the coming weeks.
By Reuters
