New Delhi: Brent crude futures climbed $2.03, or 1.86%, to $111.29 a barrel on Monday, after touching $112 earlier, the highest since May 5. US West Texas
Intermediate crude rose $2.31, or 2.19%, to $107.73 a barrel, having earlier touched $108.70, its highest level since April 30. Both contracts gained more than 7% last week as hopes of a peace deal dimmed and ship attacks around the Strait of Hormuz continued.
Peace efforts suffered a further blow after last week’s talks between US President Donald Trump and Chinese President Xi Jinping ended without any indication that Beijing would help resolve the conflict.
UAE nuclear plant attack raises escalation fears
Emirati officials said they were investigating the source of a drone strike on the Barakah nuclear power plant, adding that the UAE had the full right to respond to such “terrorist attacks.” Saudi Arabia also intercepted three drones that entered from Iraqi airspace, warning it would take all necessary operational measures to respond to any attempt to violate its sovereignty and security. The drone attacks on both the UAE and Saudi Arabia have sharply raised concerns of a wider escalation in the conflict.
Trump to discuss military options against Iran
US President Donald Trump is expected to meet top national security advisers on Tuesday to discuss options for military action regarding Iran, Axios reported. The development has added fresh uncertainty to already volatile oil markets, with traders pricing in the risk of a further escalation in the West Asia conflict. With no clear resolution in sight, oil markets are likely to remain under pressure in the sessions ahead.
