Trump and Iran have driven oil prices to a two-week high — Reuters
Global oil prices continued their sharp rise on the morning of May 18 amid a sudden escalation of the geopolitical situation in the Middle East.
The main catalyst for the price surge was Iran’s drone attack on a nuclear power plant in the United Arab Emirates.
The market also reacted to reports that U.S. President Donald Trump was considering options for military action against the Iranian government, according to Reuters.
The European benchmark oil has hit multi-day highs and continues to show an upward trend. As of 7:32 a.m. Kyiv time, the price of Brent crude rose by $2.01 to $111.27 per barrel.
During trading, the price of Brent reached $112 per barrel—the highest level since May 5.
A similar trend is observed in the U.S. energy market, where a significant rise in raw material prices has been recorded. U.S. WTI crude oil rose by $2.33 to $107.75 per barrel.
During the trading session, the price of the U.S. oil benchmark reached $108.70—the highest level since April 30.
The current rise is a continuation of the long-term trend observed throughout the previous week.
Reuters notes that Brent and WTI crude rose by more than 7% last week as hopes for a peace deal to end the war between the U.S. and Iran faded.
Diplomatic efforts by the international community have so far failed to produce the desired results to stabilize the situation.
Attempts to involve other global leaders in resolving the crisis have also proved fruitless.
Last week’s talks between Trump and Chinese President Xi Jinping ended with no indication that the world’s largest oil importer would help resolve the conflict.
Moreover, drone attacks on the UAE and Saudi Arabia, as well as rhetoric from the U.S. and Iran, “have raised fears of an escalation of the conflict.”
Leading international experts warn of high risks to the oil refining and logistics infrastructure of the Persian Gulf region.
“These drone strikes are a clear warning—new strikes by the U.S. or Israel against Iran could provoke new attacks by Iran or its regional allies on energy facilities and critical infrastructure in the Persian Gulf,” noted Tony Sycamore, a market analyst at IG Bank.
The affected Arab states are already preparing tough measures in response to the Iranian regime’s aggressive actions.
UAE officials stated that they are investigating the strike on the Barakah nuclear power plant, adding that they have every right to respond to such attacks.
For its part, Saudi Arabia, which intercepted three drones that entered from Iranian airspace, warned that it would take the necessary operational measures in response to any attempt to violate its sovereignty and security.
The U.S. has demanded that Iran hand over enriched uranium
Iran is introducing a fee for internet traffic transiting through the Strait of Hormuz
