The United Arab Emirates formally condemned a drone strike on the Barakah nuclear power plant perimeter on Monday, May 18. Officials labeled the incident an unprovoked terrorist attack and a dangerous escalation. The strike caused a fire at an external electrical generator but resulted in no injuries or radiological release.
Regional tensions escalated further alongside the existing closure of the Strait of Hormuz. Saudi Arabia intercepted three drones entering its airspace from Iraq and condemned the UAE strike as a threat to stability. The IAEA and other international bodies expressed grave concern over the targeting of a nuclear facility.
Global energy markets reacted sharply to the risk of wider conflict. Brent crude prices surpassed $110 per barrel, while WTI futures rose above $107. These attacks directly impacted sentiment for energy stocks and exchange-traded funds such as VDE.