Iran strikes UAE oil ports, ships in Hormuz as crude prices surge 6%

Iran launched coordinated drone and naval attacks Monday on UAE oil ports and merchant ships in the Strait of Hormuz, sending global crude prices surging more than 6% in the sharpest escalation since a U.S.-Iran ceasefire took hold in early April.

The strait handles roughly 20% of the world's oil and liquefied natural gas before the February strikes. A sustained blockade could raise fuel and consumer costs for households across Southern California.

Brent crude futures climbed $6.79, or 6.3%, to $114.96 a barrel, while U.S. West Texas Intermediate crude rose $4.23, or 4.2%, to $106.17 a barrel, according to The Korea Times.

Iranian drones struck a UAE oil port and ignited a fire, while Iran's Revolutionary Guards Navy targeted multiple merchant vessels in the region, The Korea Times reported. A South Korean ship was among the vessels struck by an explosion in the strait. The U.S. military destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones, according to U.S. Central Command.

"The path for prices remain skewed to the upside as long as flows through the strait remain restricted," UBS analyst Giovanni Staunovo said, according to The Korea Times.

The assault followed U.S. President Donald Trump's statement that the Navy would open the Strait of Hormuz. Iran's Revolutionary Guards Navy responded by releasing a map asserting expanded territorial control over areas that include UAE's Fujairah and Khorfakkan ports, the report said.

The attack came days after the UAE left OPEC. OPEC+ had already announced plans to raise output targets by 188,000 barrels per day in June, a move analysts said could be offset by the renewed supply disruptions.

The United Kingdom Maritime Trade Operations issued alerts to commercial shipping in the region. Iran was suspected of attacking as many as four ships in the Gulf over a 24-hour period, The Korea Times reported.