UAE intercepts Iranian cruise missiles as oil prices surge on Strait of Hormuz tensions

The United Arab Emirates said Monday that Iran fired four cruise missiles and multiple drones toward the country, as U.S. warships crossed the Strait of Hormuz and oil prices surged more than 5%.

The UAE's defense ministry confirmed three missiles were intercepted over territorial waters and a fourth fell into the sea. Authorities issued public alerts urging residents to take cover.

Why did oil prices jump on Monday?

Oil prices climbed after a drone strike caused a fire at an energy installation in the emirate of Fujairah.

Brent crude for July delivery jumped more than 5%, with traders reacting to escalating Iran-UAE hostilities and the disruption risk to the Strait of Hormuz, which typically carries about one-fifth of the world's oil and gas supplies.

What happened at the Fujairah oil facility?

Authorities in Fujairah confirmed a fire broke out in the Fujairah Oil Industry Zone after a drone strike attributed to Iran.

A strike on the energy installation left three Indian nationals with moderate injuries, the Fujairah media office said, adding that all three had been transferred to hospital for treatment.

Civil defense teams responded immediately and worked to contain the blaze, state news agency WAM reported. UAE forces were simultaneously working to repel ongoing missile and drone attacks.

Earlier Monday, the UAE condemned an Iranian drone attack on an ADNOC oil tanker in the Strait of Hormuz. ADNOC said two drones struck the MV Barakah off the coast of Oman, but no injuries were reported and the vessel was not carrying cargo. The UAE foreign ministry said targeting commercial shipping constituted acts of piracy by Iran's Revolutionary Guard Corps.

What did Iran say about the missile strike?

Iran's state television said its navy fired a cruise missile as a warning shot, while the UAE reported separately that Iran had also launched drones at one of its oil tankers.

Tehran's forces have effectively closed the Strait of Hormuz in response to the U.S.-Israeli military campaign that began Feb. 28. Washington is maintaining a naval blockade of Iranian ports in response.

What role is the United States playing in the Strait of Hormuz?

U.S. Navy destroyers passed through the Strait of Hormuz Monday as part of a ship escort mission announced by President Donald Trump over the weekend. Trump has indefinitely extended an initial two-week ceasefire that halted the fighting, but the conflict and its widespread economic fallout remain unresolved. U.S. Central Command said it would deploy guided-missile destroyers, more than 100 aircraft, unmanned platforms and about 15,000 personnel to support maritime security operations.

How did Asian and European markets respond?

Seoul surged more than 5% and Taipei jumped more than 4% to hit fresh records Monday, as Asian traders joined a broader rally in tech shares. South Korean chip giant SK Hynix gained 12.5%, Samsung rose more than 5% and Taiwan's TSMC climbed 6.6%. Paris and Frankfurt each ended the day down more than 1%, while Tokyo, Shanghai and London were closed for holidays.

Why are markets rising despite the Middle East crisis?

Investors have largely focused on strong corporate earnings, with forecast-beating first-quarter results from Apple, Google, Microsoft and Samsung reawakening interest in artificial intelligence.

Companies in the S&P 500 are on track to report earnings growth of 27.1%, the highest rate in more than four years, according to FactSet. Swissquote analyst Ipek Ozkardeskaya said there is "optimism that AI continues to mask the pain elsewhere."

The tech-heavy Nasdaq initially pushed higher from a record close Friday before falling into the red as oil prices spiked. Briefing.com analyst Patrick O'Hare said many investors who missed the rally may be looking for a pullback to buy into it. "That is perhaps why the indices just aren't selling off to any large degree," he said.

Further tech earnings reports are due this week, including Palantir on Monday, followed by Advanced Micro Devices and Arm Holdings.

The yen spiked earlier Monday against the dollar, prompting speculation of another intervention by Tokyo. The currency had already moved sharply higher against the greenback Friday, with media reports saying Japan spent $31 billion propping up the currency.

As of April 29, maritime intelligence firm AXSMarine counted more than 900 commercial vessels in the Gulf, down from over 1,100 at the start of the conflict.