GLOBAL oil markets have jolted sharply higher after a drone strike on a United Arab Emirates energy facility heightened fears of a broader regional escalation, threatening a fragile stand-off between Washington and Tehran and unsettling investors worldwide.
AFP reported on Tuesday that Brent crude leapt more than five per cent following the attack, as fresh military movements in the Strait of Hormuz compounded concerns over supply disruptions through one of the world’s most critical oil transport routes.
Prices rallied after a drone strike triggered a fire at an energy installation in the United Arab Emirates, with July delivery Brent crude oil climbing sharply in international trading.
Crude oil prices remained highly volatile on 5 May as escalating geopolitical tensions in the Middle East unsettled global energy markets and heightened concerns over supply stability.
US benchmark West Texas Intermediate was trading at about US$105.13 a barrel, while international marker Brent crude oil hovered near US$114.44, reflecting persistent risk premiums linked to the regional conflict.
The sharp price movements underscore the market’s sensitivity to developments in the Middle East, where rising instability continues to threaten key النفط supply routes and production hubs.
Authorities in the UAE later confirmed that the facility had been targeted by drones and missiles attributed to Iran, marking a significant escalation in hostilities.
The incident unfolded against a backdrop of heightened military activity, after the United States Navy announced that one of its destroyers had passed through the Strait of Hormuz as part of a newly announced mission to safeguard commercial shipping.
The deployment followed an announcement by Donald Trump over the weekend.
Tehran has responded to earlier US-Israeli military strikes, which began on 28 February, by moving to close the strait, a vital artery for global oil and gas shipments, while Washington has maintained sanctions on Iranian ports.
Despite rising energy prices, US equity markets had until recently defied expectations, with the S&P 500 and Nasdaq Composite both ending last week at record highs.
However, sentiment shifted in the latest session as investors adopted a more cautious stance.
Patrick O’Hare of Briefing.com said the renewed tensions offered a timely reason for investors to lock in gains and reduce exposure.
"While the situation in West Asia remains troubling, the market is not currently worrying about a worst-case scenario in the Iran conflict," he said, describing the latest moves as a process of de-risking. - May 5, 2026
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