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Oil prices rose sharply on Monday following fresh instability in the Middle East, with Brent crude climbing more than five percent after reports of attacks on energy infrastructure in the United Arab Emirates and heightened military activity near the Strait of Hormuz.
The spike came after a drone strike triggered a fire at an energy installation in Fujairah, one of the UAE’s key oil hubs, raising immediate concerns over the security of export facilities that feed global markets.
The UAE defence ministry said Iranian drone and missile attacks were targeting the country, signalling a further escalation in tensions between both sides and intensifying fears of wider disruption to oil flows.
In a separate development, the US Navy confirmed that its destroyers had passed through the Strait of Hormuz as part of an escort mission ordered over the weekend, a move that added pressure to an already volatile shipping lane.
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Iranian state media said its navy fired what it described as a cruise missile “warning shot”, while UAE officials reported drone activity targeting one of its oil tankers, deepening uncertainty over maritime safety in the Gulf.
Traders reacted quickly, pushing Brent crude higher as concerns grew that any sustained disruption in the Strait of Hormuz could tighten global supply, given that a significant share of the world’s oil passes through the route daily.
Analysts noted that the market was being driven almost entirely by geopolitical risk, with investors closely watching whether the situation escalates into broader disruption of exports from the Gulf region.
The latest developments underscore how quickly oil prices can react to tensions in the Middle East, especially when critical infrastructure and shipping routes are directly affected.
