LAGOS — Global oil prices surged on Monday, with Brent crude hitting a multi-week high above $111 per barrel (pb), as diplomatic efforts to end the 11-week-old U.S.-Iran war stalled amid escalating regional infrastructure attacks.
WTI Crude gained more than $2.30, trading up near $108 a barrel, building upon a sharp 7% gain from the previous week.
The market spike followed a weekend drone strike on the United Arab Emirates’ peaceful Barakah Nuclear Power Plant. A separate drone incursion was also intercepted over neighboring Saudi Arabia.
Although UAE officials confirmed the strike caused no radiological leaks, the International Atomic Energy Agency expressed grave concern. Analysts warned the incident marks a dangerous expansion of the conflict into critical civilian infrastructure.
Adding to supply anxieties, U.S. President Donald Trump declared the current ceasefire on “life support.” He is scheduled to meet top national security advisers on Tuesday to evaluate severe new military options against Tehran.
The geopolitical gridlock follows a high-stakes summit between President Trump and Chinese President Xi Jinping. The Beijing talks concluded without an agreement on how to ease the ongoing disruption of global energy flows.
A vital maritime bottleneck persists as Iran maintains a tight chokehold on the Strait of Hormuz. In response, Washington has enforced a rigid naval blockade, crippling global transit and draining crude inventories to eight-year lows.
The premium on crude was further amplified after the White House allowed a critical Russian oil sanctions waiver to lapse, cutting off alternative seaborne supplies to major international buyers.
The conflict began on February 28 with joint U.S.-Israeli airstrikes on Iran. Experts warn that failed diplomacy and targeted infrastructure strikes will keep energy markets highly volatile ahead of the peak summer demand season.
