Oil Surges Past $107 After UAE Nuclear Plant Drone Strike

Oil prices extended gains after a May 17 drone attack on a UAE nuclear power plant heightened Middle East supply risks and stalled diplomatic efforts with Iran. The move follows a week of sharp volatility triggered by Diamondback Energy’s May 8 filing for a $70 million WTI-Brent basis hedge and $7 billion in suspiciously timed short positions that drew DOJ and CFTC scrutiny on May 10. Prices then rallied after President Trump rejected an Iranian proposal on May 11, pushing June WTI to $98.40 and July Brent to $104.51 while tightening U.S. diesel inventories to decade lows. Renewed escalation fears have now lifted WTI above $107.