Oil tops $120 after drone strike hits ADNOC tanker
Brent crude topped $120 after two drones struck the empty ADNOC tanker Barakah near Fujairah in the Strait of Hormuz; the UAE blamed Iran and declared the waterway effectively closed.
Two drones struck the empty Abu Dhabi National Oil Company tanker Barakah near Fujairah in the Strait of Hormuz on Monday. The attack pushed Brent crude to an intraday high of $120.36 before easing; at the time of reporting Brent traded around $119.19.
The UK Maritime Trade Operations reported the vessel was hit by unknown projectiles about 78 nautical miles north of Fujairah. No crew members were injured, according to the UAE Ministry of Foreign Affairs.
Abu Dhabi accused Iran’s Islamic Revolutionary Guard Corps of carrying out the strike, labeled the incident a “terrorist attack” and described it as acts of piracy. The UAE described the attack as a violation of U.N. Security Council Resolution 2817 on freedom of navigation and demanded Iran halt strikes and reopen the strait.
The Strait of Hormuz handles roughly one-fifth of global oil shipments. Brent futures had risen about 8% over the prior week on supply concerns before Monday’s move.
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.” The Barakah incident was the 24th reported attack on regional shipping since the war began and marked a second closure of the strait to commercial traffic this spring. Tehran first closed the waterway on Feb. 28 and tightened restrictions on April 18 after the United States declined to lift its counter-blockade.
The United States has prepared a naval escort operation called Project Freedom to guide vessels through restricted waters. President Donald Trump announced the Navy would begin escorting stranded ships and “guide their Ships safely out of these restricted Waterways.” Iran warned it would strike any U.S. or Israeli forces entering the strait. Iranian state media reported its navy had repelled foreign destroyers and struck U.S. vessels; U.S. Central Command denied those reports.
UAE officials pressed for an immediate end to hostilities and the unconditional reopening of the strait. Traders and governments monitored whether oil prices would hold the recent gains or retreat as risk perceptions changed.
