Crude Oil Rises to 2-Week Peak Following Attack on UAE Nuclear Plant

Global oil prices climbed to a two-week high on Monday after a drone strike targeted a nuclear power facility in the United Arab Emirates, heightening fears of escalating conflict in the Middle East and potential disruptions to energy supplies.

Brent crude and U.S. West Texas Intermediate (WTI) both surged in early trading, extending gains driven by growing geopolitical risk in the Gulf region, a key corridor for global oil shipments.

The attack reportedly struck an electrical generator outside the perimeter of the Barakah nuclear power plant in Abu Dhabi, sparking a fire but causing no injuries or radiation leakage, according to UAE authorities and nuclear safety regulators.

While no group has officially claimed responsibility, officials in the UAE described the incident as a “dangerous escalation,” with investigations ongoing into the source of the drones. The International Atomic Energy Agency also confirmed it was monitoring the situation closely.

Market analysts say the incident has intensified concerns about supply security in the oil-rich Gulf region, especially amid ongoing instability linked to tensions involving Iran and its regional rivals. The Strait of Hormuz, through which a significant portion of global crude flows, remains a key flashpoint for traders.

The latest rally adds to a broader trend of volatility in energy markets, as investors weigh the risk of further attacks on critical infrastructure against already tight global supply conditions.

Authorities in the region have warned of possible retaliation and further escalation, raising the likelihood of continued price swings in the days ahead.