Oil Jumps Near $120 per Barrel After Mysterious Drone Attack on UAE Plant

Global oil markets reacted sharply after reports emerged that an Iranian drone strike targeted a petroleum facility in the United Arab Emirates. This pushed Brent crude oil prices above $119 per barrel during volatile trading.

An immediate spike in spot prices was observed following news of the attack, as geopolitical tensions in the Gulf once again injected a strong risk premium into energy markets.

At the time of press, Brent had retreated back to $113-115 but could be on its way back to $120 if panic remains.

Posters on X observed growing divergence between physical oil prices and paper futures trading. While spot Brent rallied aggressively, futures contracts showed weaker momentum, forming lower highs.

Some interpreted this as hesitation among institutional traders despite rising war risks.

Oil markets remain highly sensitive to Middle East developments, with even unconfirmed security incidents capable of triggering rapid price swings. A prominent trader posted on X that such reports are the second most powerful tools after Donald Trump’s Truth Social posts that make oil extremely volatile.