By Boluwatife Oshadiya, Energy Correspondent | May 18, 2026, 11:10 AM
Key Points
- Brent crude climbs above $110 per barrel amid renewed Middle East tensions
- Trump warns Iran to comply with US demands as fears grow over Hormuz disruption
- UAE confirms drone attack near Barakah Nuclear Power Plant
Main Story
Global oil prices advanced on Monday as escalating geopolitical tensions in the Middle East heightened concerns over potential disruptions to global crude supply routes.
International benchmark Brent crude traded at $110.73 per barrel during early trading, up 1.3% from the previous session, while US West Texas Intermediate crude rose 1.6% to $102.68 per barrel.
The market rally followed fresh remarks from US President Donald Trump, who warned Iran that the “clock is ticking” and urged Tehran to comply with US demands regarding a ceasefire agreement and nuclear restrictions.
In a post on Truth Social, Trump stated that “TIME IS OF THE ESSENCE!” as diplomatic tensions between Washington and Tehran intensified.
Investors remained focused on developments around the Strait of Hormuz, a strategic shipping route responsible for transporting nearly one-fifth of the world’s crude oil supply. Concerns over possible disruptions have continued to support bullish sentiment in the energy market.
Regional tensions escalated further after the United Arab Emirates confirmed that its air defence systems intercepted two drones, while a third struck an electrical generator outside the Barakah Nuclear Power Plant in the Al Dhafra region.
The UAE Defence Ministry said investigations were ongoing to determine the source of the attack.
Analysts said the sustained rise in oil prices could worsen inflationary pressures globally and complicate monetary policy decisions for central banks already battling elevated consumer prices.
What’s Being Said
“A prolonged conflict involving Iran could keep oil prices elevated for an extended period and increase the likelihood that global interest rates remain higher for longer,” analysts tracking the energy market said.
“Markets are reacting not only to physical supply risks but also to broader fears of geopolitical instability across major energy transit routes,” energy strategists noted.
What’s Next
- Investors will closely monitor diplomatic developments between the US, Iran and Israel
- Further disruptions around the Strait of Hormuz could trigger additional spikes in oil prices
- Central banks may reassess inflation and interest rate projections if energy prices remain elevated
Bottom Line
The Bottom Line: Oil markets are increasingly being driven by geopolitical risk rather than supply fundamentals alone. If tensions involving Iran escalate further, energy prices could remain elevated for longer, adding fresh inflationary pressure to an already fragile global economy.
