Oil price neared $120 a barrel on Monday after a drone strike on a UAE oil tanker in the Strait of Hormuz. The UAE has blamed Iran for the attack, the 24th on regional shipping since the war began.
The Abu Dhabi National Oil Company tanker Barakah was hit by two drones near Fujairah. The strait is now effectively shut to commercial traffic for a second time this spring.
Iran Blamed for Drone Strike on Empty ADNOC Tanker
As of this writing, the Brent crude oil price was trading for $119,191, after establishing an intra-day high of $120.363, before investors started booking early profits.
Brent Crude Oil Price Performance. Source: TradingViewThe Barakah, operated by ADNOC’s maritime logistics unit, was transiting the strait empty when the strike hit. UKMTO, the British military’s maritime warning service, said the tanker was struck by “unknown projectiles.”
No crew members were injured, the UAE Ministry of Foreign Affairs said in a statement. Officials directly accused Iran’s Islamic Revolutionary Guard Corps of carrying out the strike. The ministry called the incident a “terrorist attack” and “acts of piracy.”
The UAE called the strike a “flagrant violation” of UN Security Council Resolution 2817 on freedom of navigation.
It demanded Iran halt all attacks and commit to a cessation of hostilities. Abu Dhabi also pressed for the unconditional reopening of the strait to global shipping.
Hormuz Closure Resumes as US Prepares Project Freedom
A separate strike on a northbound cargo ship off Sirik on Iran’s southern coast was reported on Sunday. UKMTO described the regional threat level as “critical” and said all crew were unharmed. It was the first reported attack in the area since April 22.
Iran first closed the strait on February 28, 2026, when the war began. Tehran re-imposed restrictions on April 18 after Washington refused to lift its counter-blockade.
The waterway carries roughly one-fifth of global oil supply. Brent crude futures had already gained about 8% over the past week on rising supply fears.
US President Donald Trump said last week that the Navy would begin escorting stranded vessels through Hormuz on Monday. The humanitarian operation, called Project Freedom, is backed by US warships.
Iran has warned it will strike any US or Israeli forces entering the strait. Iranian state media has claimed the country’s navy turned back “enemy destroyers” and hit US vessels. US Central Command has denied those reports.
The next 48 hours will test Project Freedom’s ability to clear backlogged shipping without triggering wider escalation. Markets are watching whether oil holds the gains or fades the geopolitical risk premium.
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Source: https://beincrypto.com/iran-attack-uae-fujairah-oil-price-spikes/
