Oil prices rise amid renewed military tensions between the US and Iran
On May 28, 2026, oil prices experienced significant volatility following reports of new US military strikes against Iranian targets near the Strait of Hormuz. US Central Command stated the actions were defensive, involving the destruction of four Iranian drones, while the Islamic Revolutionary Guard Corps claimed a retaliatory strike on a US base. Kuwaiti air defenses also reported intercepting missile and drone threats, raising regional security concerns. Brent crude prices reached near $98 per barrel before stabilizing, while US WTI surpassed $92. Financial markets reacted negatively, with Asian stock indices, including the Nikkei and South Korean shares, declining. US 10-year Treasury yields rose to 4.526% due to inflationary concerns related to energy costs. While some reports previously suggested progress on a 60-day ceasefire and potential negotiations, President Donald Trump clarified that he will not accept a deal without stringent conditions or sanctions relief. The US Treasury also imposed new sanctions on the Persian Gulf Strait Authority to disrupt Iranian revenue streams.