Gulf tensions send oil soaring after strike near UAE nuclear plant

Brent crude futures rose 1.62 percent to $111.03 per barrel, while US West Texas Intermediate increased 2.01 percent to $107.54 per barrel in early trading, News.Az reports, citing AGBI.

The UAE said an electricity generator outside the inner perimeter of the Barakah nuclear facility in the Al Dhafra region caught fire following a drone strike that reportedly originated from the western border.

The UAE foreign ministry described the incident as a “dangerous escalation” and a direct threat to national security. Officials said the country reserves the right to respond to what they called “terrorist attacks.”

The Federal Authority for Nuclear Regulation stated that the fire did not affect the safety of the nuclear power plant and confirmed that all units continue operating normally.

Presidential adviser Anwar Gargash said the attack represented a serious escalation and violated international laws and norms.

At the same time, Saudi Arabia announced that it intercepted and destroyed three drones that entered its airspace from Iraq.

The Iran war began on February 28, while a ceasefire was declared on April 8 to allow negotiations to start. However, talks between the US, Israel and Iran now appear to have stalled amid rising tensions across the Gulf region.

US President Donald Trump warned Iran in a post on Truth Social that “the clock is ticking,” saying Tehran needed to move quickly or face serious consequences.

In response, Iranian armed forces spokesperson Abolfazl Shekarchi warned that any new attacks by the US would trigger “aggressive and surprise scenarios.”

Regional stock markets also reacted negatively to the latest developments. Saudi Arabia’s benchmark index fell for a fourth consecutive session, while markets in Kuwait and Egypt also closed lower as fears grew over continued instability and threats to shipping through the Strait of Hormuz.