Oil Prices Rise After Drone Attack on UAE Nuclear Plant and Iran Conflict Fears

Brent Crude Hits Two-Week High on Supply Risk Concerns

Oil prices climbed to a two-week high on Monday after a drone attack on the United Arab Emirates’ Barakah nuclear power plant and rising tensions linked to the stalled Iran conflict. Brent crude rose by $2.1, or 1.84%, to $113.27 per barrel after briefly touching $112, the highest level since May 5. U.S. West Texas Intermediate gained $2.33, or 2.21%, reaching $107.75, its strongest since April 30.

The move came as markets reacted to fresh drone incidents in the Gulf region. UAE officials confirmed a drone struck an electrical generator near the Barakah plant, while Saudi Arabia said it intercepted three drones entering from Iraqi airspace. Both countries said they are monitoring security threats and may respond to further violations.

Iran Tensions and Trump Comments Add Pressure

Analysts said fears of renewed attacks involving Iran or its regional allies have increased supply risk across key oil shipping routes, especially the Strait of Hormuz. U.S. President Donald Trump is expected to discuss military options on Iran with national security advisers, adding to market uncertainty.

At the same time, the U.S. allowed a sanctions waiver on Russian seaborne oil to expire, which may further tighten global supply. Market experts noted that rising geopolitical risk and disrupted trade flows are driving oil higher as investors price in potential escalation.