Brent crude climbed sharply on Monday, rising more than 5% after reports that Iranian forces struck an oil facility in the United Arab Emirates, pushing traders to price in immediate supply risk from the Gulf region.
As at the time of writing 10:00 pm (WAT), Brent crude was trading at about $113.7 per barrel, while West Texas Intermediate (WTI) stood at $104.9 per barrel, according to Oilprice.com. The prices held at elevated levels into the night after a volatile session driven by Middle East developments.
The trigger for the rally came from an attack on the UAE’s Fujairah oil industrial zone, where Iranian drones and missiles reportedly caused fires and disrupted operations. The incident quickly raised concerns about the safety of export infrastructure outside the Strait of Hormuz.
Traders reacted almost instantly. Brent futures jumped between 5% and 6% within hours as markets reassessed the risk of a wider conflict that could affect crude shipments from one of the world’s most important oil corridors.
The Strait of Hormuz, which carries a large share of global crude exports, remains the central focus. Any threat to movement through the waterway tends to translate directly into higher oil prices, and that pattern played out again in Monday’s trading.
According to Oilprice.com, the price surge reflects a clear shift in market behaviour, where geopolitical risk is now outweighing supply and demand fundamentals, at least in the short term.
The report also noted increased naval activity in the Gulf, including escort operations for commercial vessels, as tensions between Iran and the United States continued to escalate around control of maritime routes.
With Brent holding above $110 into late trading, the market remains firmly on edge, and price direction is now tied closely to developments in the Gulf rather than production or inventory data.