Oil Climbs After UAE Plant Strike Sparks Supply Fears

May 18, 2026, brought fresh turbulence to energy markets as oil prices surged after a drone strike targeted a UAE nuclear facility. The latest escalation around Gulf infrastructure pushed Brent crude to a two-week high and revived fears of tighter global supply.

Oil Jumps as Gulf Tensions Shake Energy Markets

Oil prices advanced sharply on Monday after a drone attack on the UAE’s Barakah nuclear power plant rattled traders and deepened concerns over Middle East supply disruptions.

Brent crude rose 0.52% to $109.83 a barrel after touching $112 earlier, its highest level since May 5, while U.S. Texas Intermediate climbed 0.75% to $106.21.

The rally extended last week’s gains of more than 7%, fueled by fading hopes for progress in efforts to ease the Iran conflict and secure shipping routes near the Strait of Hormuz.

Drone Strikes Add Pressure to Global Oil Supply

Fresh drone incidents in the UAE and Saudi Arabia amplified fears of broader regional instability. Analysts warned that renewed military escalation could threaten Gulf energy infrastructure and tighten crude supply further, especially after Washington allowed a waiver for Russian seaborne oil purchases to expire.