Global oil prices touch two-week high after drone attack on UAE nuclear power plant
Brent crude prices climbed $2.01, or 1.84%, to $111.27 a barrel, but were lower than $112 -- the highest they touched earlier since May 5.
US West Texas Intermediate crude plummeted $2.33, or 2.21%, to stand at $107.75 a barrel, after a hike to $108.70, its highest since April 30. (AP Photo) Oil prices spiralled upwards on Monday as efforts to put an end to the war in Iran appeared to have stalled, after a nuclear plant in the United Arab Emirates was attacked, news agency Reuters reported.
Brent crude prices climbed $2.01, or 1.84%, to $111.27 a barrel, but were lower than $112 — the highest they touched earlier since May 5.
US West Texas Intermediate crude plummeted $2.33, or 2.21%, to stand at $107.75 a barrel, after a hike to $108.70, its highest since April 30.
The drone attacks on the UAE and Saudi Arabia, and the narrative from the United States and Iran, have triggered concerns of an escalation in the situation. The talks between US President Donald Trump and his Chinese counterpart Xi Jinping last week also ended without any indication from the world’s top oil importer that it would help resolve the crisis in the Middle East.
With hopes for a peace deal between US and Iran dashed, both gained over 7% last week.
“These drone strikes are a pointed warning – renewed U.S. or Israeli strikes on Iran could trigger more proxy attacks on Gulf energy and critical infrastructure by Iran or its regional proxies,” Reuters quoted IG market analyst Tony Sycamore as saying.
Trump is now expected to weigh military options on Iran.
–with inputs from Reuters
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