Oil prices climbed to a two-week high on Monday after a drone attack targeted the United Arab Emirates’ Barakah nuclear power plant, fueling fresh fears that the Iran conflict could trigger wider disruptions in global energy supplies.
Brent crude rose $2.01, or 1.84 percent, to $111.27 per barrel after briefly crossing $112 during the session, its highest level since May 5. US West Texas Intermediate crude gained $2.33, or 2.21 percent, to $107.75 per barrel after touching $108.70 earlier in the day.
The latest rally came as hopes for a diplomatic breakthrough in the Iran conflict continued to fade amid stalled international efforts and growing concerns about broader regional escalation.
Emirati authorities confirmed that the Barakah nuclear power plant had come under a drone attack, while Saudi Arabia said it intercepted three drones entering from Iraqi airspace.
The developments have raised fresh concerns over the security of Gulf energy infrastructure and shipping routes connected to the Strait of Hormuz, one of the world’s most important oil transit chokepoints.
Analysts said the attacks highlighted the increasing risk of a wider proxy conflict, particularly if the United States or Israel pursues further military action against Iran.
Additional support for oil prices came after the Trump administration allowed a sanctions waiver to lapse, ending an arrangement that had enabled countries including India to continue buying Russian seaborne oil.
Both major oil benchmarks had already gained more than 7 percent last week as traders reacted to mounting geopolitical tensions and the possibility of supply disruptions across the Middle East.
