Categories: Energy

Oil prices soar after US, Iran trade strikes

Oil prices jumped more than 2% on Thursday, May 28, 2026, after Iran’s Revolutionary Guards said they targeted a United States airbase in response to a U.S. attack in the port city of Bandar Abbas.

Brent ‌crude futures rose $2.34, or 2.48%, to $96.63 a barrel by 0701 GMT, while the more active August contract gained $2.24 or 2.43%, to $94.49, with the July contract set to expire on Friday.

U.S. West Texas Intermediate futures were up $2.26, or 2.55%, at $90.94.

Both benchmarks slipped more than 5% to touch their lowest in a month in the previous session on ⁠the possibility of a U.S.-Iran deal to end their war and reopen the Strait of Hormuz.

The Islamic Revolutionary Guard Corps said on Thursday it targeted a U.S. airbase after what it described as an early morning U.S. attack near Bandar Abbas airport.

It warned that any repeat of what they called aggression would draw a “more decisive” response.

The U.S. military launched new strikes in Iran targeting a military site that officials believed posed a threat to U.S. forces and commercial maritime traffic in the Strait of Hormuz, a U.S. ‌official ⁠told Reuters.

“The rise in oil prices highlights the fragility of the current ‘no peace, no war’ situation between the United States and Iran,” said Simon-Peter Massabni, head of business development at XS.com.

“While the market holds onto hopes that the conflict is nearing an end, the increasing frequency of skirmishes between ⁠the two sides, coupled with Donald Trump’s evident frustration, suggests that this conflict may continue. As a result, the Strait of Hormuz is likely to remain closed,” he added.