By: AGBI

Oil prices rose on Monday as talks to end the Iran war stalled and the UAE investigated a drone attack on a nuclear power plant.

Brent crude futures rose 1.62 percent to $111.03 a barrel by 05:06 GMT and US West Texas Intermediate was up 2.01 percent at $107.54 a barrel.

The UAE said on Sunday that an electricity generator outside the inner perimeter of the Barakah nuclear power plant in the Al Dhafra region was set on fire following a drone attack that originated from the western border.

“These attacks constitute a dangerous escalation, an unacceptable act of aggression, and a direct threat to the country’s security,” the UAE foreign ministry said in a statement.

Emirati officials told UAE news agency Wam they were investigating the source of the strike and that the country had the full right to respond to such “terrorist attacks”.

The UAE’s Federal Authority for Nuclear Regulation confirmed that the fire did not affect the safety of the power plant and that all units are operating as normal.

Anwar Gargash, an adviser to the UAE president, said on X that the attack “whether carried out by the principal perpetrator or through one of its agents, represents a dangerous escalation and a dark scene that violates all international laws and norms”.

Saudi Arabia said on Sunday it had intercepted and destroyed three drones that entered Saudi airspace from Iraq.

The Iran war began on February 28 and a ceasefire was announced on April 8 to allow peace talks to commence. The latest Gulf attacks come as negotiations between the US, Israel and Iran appeared to stall.

“For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” US President Donald Trump said in a post on Truth Social. “TIME IS OF THE ESSENCE!”

In response, a senior spokesperson for the Iranian armed ‌forces, Abolfazl Shekarchi, told Reuters on Sunday that any new attacks by the US would “face new, aggressive, and surprise scenarios, and sink into a self-made quagmire”.

Regional stock markets ended lower on Sunday as hopes of any imminent deal to end attacks on ships travelling through the Strait of Hormuz seemed to fade.

Saudi Arabia’s benchmark index extended losses for a fourth straight session and was down 0.3 percent, with healthcare and mining leading the fall.

Kuwait’s index was down 0.9 percent and Egypt dropped 1.5 percent.