Brent crude rises to $111.28 as Trump sets Tuesday security meeting; UAE drone strike near nuclear plant adds regional risk premium.
Oil prices rose in Asian trading** rose on Monday after President Donald Trump warned Iran the “clock is ticking” and peace talks remained stalled. The global benchmark Brent crude settled 1.85% higher at $111.28, while US-traded WTI climbed 2.32% to $107.87.
The rally extends a volatile period for energy markets that began when Iran effectively closed the Strait of Hormuz on 28 February in retaliation for US and Israeli strikes. Around one-fifth of the world's oil and LNG normally passes through the narrow waterway. The current environment echoes the dynamics covered in our earlier analysis of the Iran-U.S. Impasse Pushes Oil Higher as Inventories Near Floor.
Trump’s social-media post on Monday morning escalated the tone. “They better get moving, FAST, or there won’t be anything left of them,” he wrote. “TIME IS OF THE ESSENCE!”
The message echoed his warning in early April – just before a ceasefire was announced – that a “whole civilisation” would die unless Tehran agreed to a peace deal. Last week Trump called the truce on “massive life support” after rejecting Iran’s demands as “totally unacceptable”.
According to Axios, Trump is expected to hold a meeting on Tuesday with his top national security advisers to discuss options for military action regarding Iran. The meeting’s outcome will set the near-term direction for oil. A decision to increase pressure – through strikes or a tighter blockade would push Brent toward the $115–$120 range. Any signal that signal of diplomacy that could trigger a sharp reversal**.
Iranian media reported that Washington had made no concrete concessions in its response to Tehran’s latest proposals. The semi-official Mehr news agency described a lack of compromise from the US as leading to an “impasse in the negotiations”.
The Strait of Hormuz is the chokepoint for roughly 20% of global oil and LNG transit. Its continued closure tightens an already undersupplied physical market. A new dimension entered the risk calculus on Sunday.
The United Arab Emirates said a drone strike triggered a fire near the Barakah Nuclear Power Plant in Abu Dhabi. Officials confirmed three drones entered UAE airspace from the “western border direction”. Two were intercepted, the third struck an electrical generator “outside the inner perimeter” of the plant, sparking a fire. No injuries or radiological impact were reported.
The source of the strike is under investigation. For oil markets, any attack on critical infrastructure near a nuclear site amplifies the risk premium in the region. The Barakah plant is the UAE’s first nuclear power station, located about 200 miles from the Strait.
During the conflict Iran has launched attacks on targets in Israel, Bahrain, and the UAE. Sunday’s strike is the first directly threatening a nuclear facility, even though the impact was limited. Traders now have to price in a higher probability of supply disruption not just at the Strait across the broader Persian Gulf infrastructure.
Oil markets are now trading on the thin line between ultimatum and negotiation. Trump’s “clock is ticking” language leaves little room for middle ground. Traders who treat the Tuesday meeting as a decisive catalyst instead of a headline event will be positioned for the next leg, not chasing the last one.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.