UAE Blames Iran for Drone Strike; Hormuz Closed, Oil Near $120

The United Arab Emirates accused Iran of launching two drones that struck an Abu Dhabi National Oil Company tanker, Barakah, near Fujairah in the Strait of Hormuz on Monday. The UAE said the incident forced the waterway to close to commercial traffic.

The Barakah, operated by ADNOC’s maritime logistics unit, was transiting the strait empty when it was hit by two projectiles, the UK Maritime Trade Operations reported, describing the weapons as unknown. The UAE Foreign Ministry reported no crew injuries and attributed the attack to Iran’s Islamic Revolutionary Guard Corps, calling it a “terrorist attack” and “acts of piracy.”

Abu Dhabi demanded that Iran halt attacks and allow the unconditional reopening of the strait, a route that carries about one-fifth of global oil supply.

Brent crude futures rose after the strike, trading around $119.19 at the time of reporting after an intraday high of $120.36. Oil had already gained roughly 8% over the previous week on concerns about regional supply.

Maritime reports show the Barakah incident was the 24th reported attack on regional shipping since the war began. The strait was first closed to commercial traffic on Feb. 28 and restrictions were reimposed on April 18. UKMTO also reported a separate strike on a northbound cargo ship off Sirik on Iran’s southern coast; all crew were reported unharmed.

The UAE described the attack as a violation of U.N. Security Council Resolution 2817 on freedom of navigation and called for a cessation of hostilities. Tehran has not acknowledged responsibility for the Barakah strike. Iranian state outlets have at times reported clashes at sea; U.S. Central Command has denied those claims.

The United States has launched a maritime operation named Project Freedom to escort vessels through the restricted waters of the Strait of Hormuz. President Donald Trump wrote that Washington would “guide their Ships safely out of these restricted Waterways” and added, “God Bless All Our Troops Engaged in Project Freedom.” Iran warned it would target U.S. or Israeli forces that enter the strait.

Officials and market participants expect the next 48 hours will test whether Project Freedom can clear backlogged shipping without further escalation and whether oil prices will sustain the risk premium created by the strike and the effective closure of the Strait of Hormuz.