Global oil prices top $114 a barrel on worries over supply disruptions

U.A.E. issues a missile-threat alert for the first time since the U.S. and Iran agreed to a cease-fire in early April

Investors were reacting Monday to the continued uncertainty over the shutdown of ship traffic through the Strait of Hormuz

Global oil prices were surging back above $114 per barrel on Monday, with renewed tensions in the Middle East again at the forefront despite the U.S.-Iranian cease-fire agreed to about a month ago.

The United Arab Emirates on Monday issued a missile-threat warning for the first time since the U.S. and Iran agreed to the cease-fire in early April, and the Associated Press reported that an Iranian drone sparked a fire at an oil facility in the U.A.E.'s eastern emirate of Fujairah.

Fujairah is the Emirates' primary port and oil storage facility on the Gulf of Oman and has been used during the Iran war to ship some oil to avoid going through the Strait of Hormuz.

Brent crude futures for July delivery were popping over 5.5% to a session high of $114.45 a barrel. West Texas Intermediate crude saw its June contract  climb 3.5% to $105.67 a barrel, according to FactSet data.

Investors also weighed conflicting reports of an Iranian strike on a U.S. warship in the Strait of Hormuz on Monday morning. In a post on X, an account for Iran's Fars News Agency said that two Iranian missiles struck a U.S. Navy ship after it "violated security protocols for transit and navigation with the intent to pass through the Strait of Hormuz" and ignored warnings from the Iranian navy.