By Ginika Igboke
Global oil prices climbed sharply on May 18 after a drone strike near a nuclear facility in the United Arab Emirates heightened fears of broader instability in the Middle East, while President Donald Trump issued a new warning to Iran as diplomatic negotiations remained stalled.
The global benchmark Brent crude rose 1.85 percent to $111.29 per barrel, reaching its highest level since early May after previously trading above $109 during intraday activity.
Meanwhile, U.S. West Texas Intermediate crude climbed more than 2 percent, moving above $107 a barrel.
Drone Strike Raises Regional Security Concerns
The price surge followed a May 17 drone attack in the UAE that struck a generator connected to a nuclear power facility and caused a fire. No group or country immediately claimed responsibility.
UAE officials described the incident as a terrorist attack and launched an investigation into its origin.
According to the country’s defense ministry, three drones entered UAE airspace through its western border region. Air defense systems intercepted two of the drones, while a third struck an electrical generator outside the secured perimeter of the Barakah Nuclear Power Plant in the Al Dhafra region.
Regional tensions expanded further when Saudi Arabia reported intercepting three drones entering its airspace from Iraq.
Saudi officials did not assign blame but stated that the country reserved the right to respond and would take all necessary measures to protect its sovereignty and national security.
The UAE later condemned the attacks targeting Saudi Arabia and expressed solidarity with the kingdom.
Iran Tensions Add Pressure to Energy Markets
Growing concerns surrounding the U.S.–Iran standoff also contributed to rising oil prices as negotiations between Washington and Tehran appeared to stall.
Trump warned Iran on May 17 to move quickly toward a resolution.
“For Iran, the clock is ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE,” Trump wrote on Truth Social.
Iranian military official Abolfazl Shekarchi responded with a warning of his own, saying future U.S. military action would trigger “crushing and severe blows” and create what he described as a “self-created quagmire” for the Trump administration.
Strait of Hormuz Disruptions Intensify Market Fears
The escalating regional conflict has also disrupted shipping activity through the Strait of Hormuz, one of the world’s most important oil transit routes.
A substantial portion of global oil and natural gas shipments passes through the waterway, making any disruption a major concern for energy markets.
In an effort to reduce pressure on prices, members of the International Energy Agency agreed in March to release 400 million barrels of oil from strategic reserves.
The move represented the largest coordinated release on record, with the United States contributing 172 million barrels from its Strategic Petroleum Reserve.
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