Key Takeaways

• Crude surges: Brent oil futures rose 2% to a two-week high of $111.45 per barrel, while WTI gained 2.2% to $103.26.
• UAE nuclear plant attacked: Drone strikes near the Barakah plant caused a fire, though no direct damage to the main facility.
• UAE blames Iran: Officials called the attack a “dangerous escalation,” pointing at Tehran or its proxies.
• Trump’s ultimatum: “Clock is ticking” for Iran to accept a deal, with renewed strikes actively being discussed with Israel.
• “Massive life support”: The ceasefire warning continues to dominate sentiment.
• Hormuz still shuttered: The strait has remained closed since late February, with shipping at a fraction of pre-war levels.
• 20% of global oil blocked: Disruptions through Hormuz continue to underpin crude prices.
• Trump-Xi summit limits: Last week’s meeting yielded few clear deals on Iran.
• U.S. oil deal questioned: Trump claimed China agreed to buy American oil, but no formal agreement appears signed.
• Russia sanctions waiver lapses: The U.S. let the waiver allowing Russian seaborne oil purchases expire.
• India impacted: Major importers must now scramble for new crude sources.
• Russia-Ukraine intensifies: Ukrainian drones battered Russia, with Moscow retaliating Monday and striking a vessel headed for a Ukrainian port.
• Russian oil infrastructure under attack: Ukraine continues targeting Russia’s energy facilities to choke off overseas revenue.

Oil prices rose sharply on Monday as tensions between the United States and Iran remained high, especially after a drone strike targeted a nuclear power plant in the United Arab Emirates.

U.S. President Donald Trump warned that the “clock is ticking” for Iran to accept a deal, as reports showed Washington and Israel actively discussing additional military operations against Tehran.

Brent oil futures for July rose 2% to a two-week high of $111.45 a barrel by 02:31 ET (06:31 GMT), while West Texas Intermediate crude futures rose 2.2% to $103.26 per barrel.

UAE Nuclear Plant Hit with Drone Attacks

On Sunday, drone strikes caused a fire near the Barakah nuclear plant in the UAE, although no direct damage was done to the main facility.

The UAE blamed Iran or one of its proxies for the attack, calling it a “dangerous escalation.”

Iran was seen launching drone and missile strikes on the UAE earlier this month, as military tensions flared across the Middle East — particularly over the Strait of Hormuz.

Trump had warned last week that a U.S.-Iran ceasefire was on “massive life support,” as attempts at negotiating a peace deal largely fell flat.

The Strait of Hormuz remained closed after Iran effectively blocked the waterway in late February. This kept oil shipments to Asia largely disrupted, underpinning crude prices.

A U.S.-China summit held last week yielded few new developments on Iran. Trump claimed that China had agreed to buy American oil, but it remained unclear whether a formal agreement had been signed.

Fears of oil supply disruptions remained a major concern, as Hormuz’s closure affected roughly 20% of the world’s oil supply. Shipping data showed traffic through the strait remained at a fraction of pre-war levels.

Adding to concerns over tighter oil markets, the U.S. let a sanctions waiver on Russian oil lapse over the weekend.

The waiver had previously allowed countries to buy Russian seaborne oil, but will now force major oil importers — especially India — to seek new sources of crude.

Russia-Ukraine War Adds to Oil Uncertainty

Separately, the Russia-Ukraine war raged on, also adding to concerns over disruptions in oil supplies.

Ukrainian drone strikes battered Russia over the weekend, with Moscow seen retaliating with its own drone attacks early Monday.

Reuters reported Russia had struck a vessel headed for loading in a Ukrainian port.

Ukraine was seen repeatedly targeting Russian energy and oil infrastructure in recent months — a trend that could greatly disrupt Moscow’s oil production, as Kyiv seeks to shut off the country’s main source of overseas revenue.