WEB DESK: Oil prices climbed sharply on Monday, reaching their highest levels in nearly two weeks as hopes for a breakthrough in the Iran conflict faded and tensions across the Gulf region intensified.
Brent crude rose by $2.03, or 1.86 percent, to $111.29 per barrel after touching $112 earlier in the session its strongest level since May 5. Meanwhile, U.S. West Texas Intermediate (WTI) crude gained $2.31, or 2.19 percent, to trade at $107.73 a barrel, after briefly hitting $108.70, the highest since April 30.
Both benchmarks had already surged more than seven percent last week amid growing concerns that continued fighting could further disrupt oil flows through the strategically vital Strait of Hormuz.
Market sentiment worsened after reports that efforts to negotiate an end to the U.S.-Israeli conflict with Iran had stalled. Concerns also deepened following an attack on the UAE’s Barakah nuclear power facility and renewed threats of escalation across the region.
Analysts warned that a prolonged conflict could keep global energy prices elevated for an extended period, potentially increasing inflationary pressure and slowing economic growth worldwide.
The UAE said it was investigating the strike on the Barakah plant and stressed that it reserved the right to respond to what it described as terrorist attacks. Saudi Arabia also reported intercepting three drones entering from Iraqi airspace and vowed to take all necessary measures to protect its sovereignty.
Growing fears of proxy attacks targeting Gulf energy infrastructure have further rattled markets. Analysts said any fresh U.S. or Israeli military action against Iran could trigger wider regional instability and threaten critical oil facilities.
Adding to uncertainty, U.S. President Donald Trump is expected to meet national security advisers on Tuesday to review possible military options regarding Iran, according to media reports.
Oil prices also found support after the Trump administration allowed a sanctions waiver on Russian seaborne oil purchases to expire, a move that could tighten global supplies further.
