Global oil markets opened the week with strong gains. Rising tensions in the Middle East fueled fears over energy supply disruptions. Traders reacted after reports confirmed an attack on a nuclear facility in the United Arab Emirates. The incident pushed oil prices to their highest levels in weeks.
Brent crude futures rose more than 1.8 percent on Monday. Prices reached $111.27 per barrel during early trading. Brent briefly climbed above $112 earlier in the session. That marked its highest level since early May. US West Texas Intermediate crude also increased to $107.75 per barrel.
The latest oil price surge followed growing uncertainty surrounding the conflict involving Iran, the United States, and Israel. Investors fear the violence could spread across the Gulf region. Many analysts warn that key energy facilities and shipping routes remain at risk.
Concerns increased after reports said a drone strike targeted the Barakah nuclear power plant in the UAE. Emirati officials confirmed they had launched an investigation into the attack. Authorities also stressed that the UAE has the right to respond to what it described as a terrorist operation.
Saudi Arabia announced that its forces intercepted three drones entering from Iraqi airspace. Saudi officials warned they would take all necessary measures to protect national security. They also pledged to defend critical infrastructure from future attacks.
The Strait of Hormuz remains a major concern for global markets. The waterway handles a large share of the world’s oil exports. Any threat in the area quickly affects energy prices worldwide. Last week, both major oil contracts gained more than seven percent.
Analysts believe the oil price surge could continue if regional tensions worsen. Market strategist Tony Sycamore warned that new strikes against Iran may trigger more attacks on Gulf energy facilities. He added that regional proxy groups could intensify operations if the conflict expands.
Diplomatic efforts have shown little progress in recent days. Talks between US President Donald Trump and Chinese President Xi Jinping ended without major breakthroughs. The discussions produced no clear solution for the ongoing conflict or maritime security concerns.
Reports also indicated that Trump plans to meet national security advisers this week. The meeting will reportedly focus on military options involving Iran. Investors continue monitoring Washington’s next moves closely.
Additional pressure came after the United States allowed a sanctions waiver on Russian oil purchases to expire. The waiver had allowed several countries, including India, to continue limited imports of Russian seaborne oil.
Energy analyst Vandana Hari said fears surrounding Iran and tighter Russian oil sanctions both supported the oil price surge. She noted that markets remain highly sensitive to geopolitical developments across major oil-producing regions.