This is a view of a vessel heading toward the Strait of Hormuz following the two-week temporary ceasefire reached between the US and Iran.
Shady Alassar/Anadolu via Getty Images
- Oil prices increased as hopes for an end to the Iran war dimmed.
- US President Donald Trump is expected to discuss military options on Tuesday.
- There were drone attacks on the UAE and Saudi Arabia.
Oil prices extended gains on Monday as efforts to end the US-Israeli war on Iran appeared to have stalled, after a nuclear power plant in the United Arab Emirates came under attack and as US President Donald Trump is expected to discuss military options on Iran.
On social media, Trump warned: “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!”
Brent crude futures climbed $2.03, or 1.86%, to $111.29 a barrel by 02:20 GMT, after touching $112 earlier, the highest since 5 May.
US West Texas Intermediate crude was at $107.73 a barrel, up $2.31, or 2.19%, following a rise to $108.70, its highest level since 30 April.
The front-month June contract expires on Tuesday.
Both contracts gained more than 7% last week as hopes of a peace deal that would end ship attacks and seizures around the Strait of Hormuz dimmed.
READ | Cracks in the bloc: Iran war splits BRICS as New Delhi summit ends without agreement
Last week’s talks between Trump and Chinese President Xi Jinping ended without an indication from the world’s top oil importer that it would help resolve the conflict.
“The longer the conflict with Iran persists, the greater the risk of protracted oil price scarring, which could keep interest rates higher for longer,” Prestige Economics’ Jason Schenker said in a note.
“This could also present persistent downside risks to growth.”
Drone attacks on the UAE and Saudi Arabia and rhetoric from the US and Iran raised concerns of an escalation in the conflict.
“For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them. TIME IS OF THE ESSENCE!” – President Donald J. Trump pic.twitter.com/33gyF0c0O5
— The White House (@WhiteHouse) May 17, 2026
Emirati officials said they were investigating the source of the strike on the Barakah nuclear power plant and that the UAE had the full right to respond to such “terrorist attacks”.
Saudi Arabia, which intercepted three drones that entered from Iraqi airspace, warned it would take the necessary operational measures to respond to any attempt to violate its sovereignty and security.
“These drone strikes are a pointed warning – renewed US or Israeli strikes on Iran could trigger more proxy attacks on Gulf energy and critical infrastructure by Iran or its regional proxies,” IG market analyst Tony Sycamore said.
An infographic titled ‘All eyes on the Strait of Hormuz following the US’ Iran ceasefire’ was created in Ankara, Turkiye on 8 April 2026.
Omar Zaghloul/Anadolu via Getty Images
Trump is expected to meet top national security advisers on Tuesday to discuss options for military action regarding Iran, Axios reported.
Separately, in a move that could support oil prices, the Trump administration on Saturday allowed a sanctions waiver to lapse that had previously allowed countries, including India, to buy Russian seaborne oil after a month-long extension.
