Global oil markets jumped sharply on Monday after new drone strikes in the United Arab Emirates and Saudi Arabia raised concerns over potential disruptions to global crude supply chains.

Brent crude climbed above $111 per barrel, while West Texas Intermediate (WTI) rose past $108 as traders reacted to escalating geopolitical risks and renewed uncertainty around the Strait of Hormuz, a key route for global oil shipments.

The latest spike followed reports of a drone strike near the Barakah nuclear power plant in the UAE. Authorities confirmed a fire broke out near an external electrical generator, but said there was no damage to the main facility, no radiation leak, and no reported injuries.

Saudi Arabia separately said it intercepted three drones that had entered its airspace from Iraq, further heightening regional tensions.

Markets were already sensitive to geopolitical signals after recent diplomatic efforts involving the United States and China failed to ease concerns over Iran-related tensions and the security of oil shipping lanes.

Analysts warn that sustained instability could tighten global supply conditions, especially as inventories decline and emergency reserves come under pressure. The International Energy Agency has estimated that global markets could face a shortfall of up to 6 million barrels per day between March and June if disruptions continue.

Some forecasts are even more aggressive. The Financial Times reported that economists at Aberdeen see a potential scenario where Brent crude could spike toward $180 per barrel if the Strait of Hormuz faces prolonged disruption.

JPMorgan analysts also caution that OECD oil stockpiles are nearing levels that could trigger operational stress, increasing the risk of sharper price volatility and possible physical supply shortages.