Oil jumps over 5% after drone strike hits UAE petroleum facility

Crude prices spiked sharply after reports of a drone attack on key energy infrastructure in the UAE, triggering fresh fears of supply disruptions in an already fragile geopolitical environment.Brent crude briefly surged past $115 per barrel, even touching $119 at one point, while WTI climbed over 3% to $105.3.

This comes after a fire at a petroleum industrial site in Fujairah, reportedly caused by an Iranian drone strike. Local authorities said civil defence teams were deployed to contain the blaze, while three Indian nationals sustained moderate injuries.
The development effectively snaps a brief period of calm in the region following an April 8 ceasefire between Washington and Tehran.Iran, however, has denied any intent to escalate, with state media quoting a senior military official saying there are no plans to attack the UAE, a claim that sits uneasily against the unfolding situation on the ground.

Meanwhile, tensions are spilling into critical global trade routes. US President Donald Trump announced a military operation to escort stranded commercial vessels through the Strait of Hormuz, calling it a humanitarian effort.In response, Iranian naval forces reportedly fired warning shots near US warships, signalling a potential flashpoint in one of the world’s most vital oil chokepoints.

The US has also moved to internationalise the situation, inviting South Korea to join the mission, even as reports suggest American forces neutralised multiple Iranian fast boats in the region.

Back home, Indian equities showed resilience but reflected caution. The Sensex rose 356 points to close at 77,269, while the Nifty ended above the 24,100 mark.

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However, both indices came off intraday highs as rising crude prices and geopolitical uncertainty capped gains. Following this, Gift Nifty was trading marginally lower near 24,000 points at 12 am IST.