Oil prices surged on Monday in international market as fresh attacks in the Gulf raised fears of supply disruption, sending ripples through global markets already under pressure from rising bond yields and geopolitical tensions.
Brent crude rose 1.2% to $110.63 a barrel, while U.S. West Texas Intermediate gained 1.0% to $106.42.
The spike followed a drone strike that caused a fire at a nuclear power plant in the United Arab Emirates, while Saudi Arabia reported intercepting three drones.
US President Donald Trump warned Iran it must act “fast” to reach a deal. Concerns over the Strait of Hormuz, a key shipping route for roughly 20% of global oil trade, further amplified tensions, as Tehran seeks tighter control over the waterway.
In a related development, Washington imposed five strict conditions on Iran for any potential peace process.
The US rejected Iran’s demand for compensation for damages caused by past bombings and stated it will not provide any financial payment.
Reports indicate that the US has limited Iran to the transfer of 400 kilograms of enriched uranium and one nuclear facility, while agreeing to only 25% flexibility on frozen assets.
Washington also emphasized negotiations to ease tensions across all fronts, including Lebanon.
