-- EMEA crude futures advanced in after-hours trading on Monday after Iran launched missile and drone attacks on the UAE and struck vessels in the Strait of Hormuz, stoking fears of further disruption to global energy supplies.
Brent crude futures climbed by 6.06% to $114.75 per barrel, while Murban oil futures were down 2.64% to $106.50/bbl.
Oil remains the macro anchor as markets watch whether the US plan to help free ships stuck around the Strait of Hormuz can ease supply pressure, Saxo Bank strategist said in a note Monday.
On Monday, the UAE's Defense Ministry said that Iran had launched four cruise missiles at the country. Three of the missiles were successfully engaged by the UAE's air defenses over its territorial waters, the ministry said in a statement on X. The fourth missile fell into the sea, it said.
Fujairah's media office said in a post on X that a large fire was caused at an oil industrial zone in the city after a drone attack from Iran. The drone attack reportedly hit Fujairah's VTTI oil terminal as Tehran steps up strikes in the vicinity of the Hormuz.
Earlier, the UAE accused Iran of attacking a vessel affiliated with its state energy firm Adnoc Group as it attempted to transit the Strait. "The vessel was not carrying any cargo at the time of the incident," Adnoc Logistics and Services, a unit of Adnoc, said in a social media post.
The attack on the UAE comes after Iran's Revolutionary Guards Navy issued a map it said was expanding the areas under Tehran's control near the Strait to include the UAE's ports of Fujairah and Khorfakkan, as well as the coast of the UAE's emirate of Umm Al Quwain.
Meanwhile, the escalation follows President Trump's announcement on Sunday that the US military would try to restore transit via the Hormuz starting Monday and help stranded vessels exit the strategic waterway.
US Central Command said that two American-flagged merchant vessels transited the Strait on Monday, adding that the military is actively working to restore commercial flow.
However, Iran's Islamic Revolutionary Guards Corps said that no commercial vessels or oil tankers have transited the Hormuz, dismissing the US claims as "baseless and outright false."
The United Kingdom Maritime Trade Operations Center said on Monday that two commercial ships were attacked in or near the Strait over the weekend. A tanker was hit by projectiles north of Fujairah, and a bulk carrier was attacked by several small craft off the coast of Iran.
On the supply front, OPEC+ agreed on Sunday to increase oil output by 188,000 barrels per day at the group's first meeting since the loss of its key member, the UAE.
"This increase is unlikely to be realised, given that 55% of it is expected to come from Persian Gulf producers," ING strategists said, adding that this won't happen amid ongoing disruptions in the Strait.