Oil Prices Surge to Two-Week High after Strike on UAE Nuclear Plant

By Staff, Agencies 

Oil prices extended gains on Monday as concerns mounted over a broader US- “Israeli” aggression on Iran, following drone attacks targeting critical infrastructure in the Gulf and signs that diplomatic efforts had stalled.

Brent crude futures rose $1.44, or 1.32%, to $110.70 per barrel by 2337 GMT after reaching their highest level since May 5 earlier in the session. US West Texas Intermediate crude climbed $1.84, or 1.75%, to $107.26 a barrel after hitting its strongest level since May 4.

Both benchmarks gained more than 7% last week as hopes for a de-escalation faded, particularly around the Strait of Hormuz, a critical global energy transit route. Market concerns intensified after talks between US President Donald Trump and Chinese President Xi Jinping ended without indications that Beijing would play a role in easing the conflict.

The latest market rally followed reports of drone attacks targeting the United Arab Emirates and Saudi Arabia, raising fears of a broader regional escalation that could threaten Gulf energy infrastructure and oil exports.

Emirati officials said authorities were investigating the source of a strike targeting the Barakah nuclear power plant, stressing that the UAE retained the right to respond to what it described as “terrorist attacks.”

Saudi Arabia claimed that it had intercepted three drones that entered its airspace from Iraq, warning that it would take “necessary operational measures” against any threat to its sovereignty and security.

IG market analyst Tony Sycamore said the attacks reflected rising risks tied to the conflict.
"These drone strikes are a pointed warning - renewed US or “Israeli” strikes on Iran could trigger more proxy attacks on Gulf energy and critical infrastructure by Iran or its regional proxies," Sycamore said.

The reports came after a Wall Street Journal investigation revealed Saturday that the UAE and Saudi Arabia carried out multiple military attacks against Iran in secret coordination with the United States and "Israel" during the opening phase of the war, shattering a fragile regional equilibrium and exposing the deep involvement of the Gulf monarchies in the US‑"Israeli" aggression on Iran.

The report says the UAE conducted multiple strikes in coordination with the United States and “Israel,” using warplanes and Chinese-made drones. Among the targets was reportedly a refinery on Iran’s Lavan Island in the Gulf.

Saudi Arabia, meanwhile, is said to have carried out airstrikes targeting alleged Iranian drone and missile launch sites, as well as positions in Iraq linked to resistance factions.

Neither Riyadh nor Abu Dhabi has officially confirmed the operations, and US officials also declined to comment on the reported strikes.

The report highlights growing divergence between Saudi Arabia and the UAE in their approach to Iran as the war continues.

The UAE has adopted the most aggressive stance, including bombing an Iranian refinery.