Oil prices increased in early Asian trading following new US strikes on an Iranian military location near Bandar Abbas and the interception of several drones in the Strait of Hormuz, even as peace negotiations continue between Washington and Tehran.
Oil prices experienced a bounce in early Asian trading on Thursday, May 28, after the US military executed fresh strikes aimed at a military site near Bandar Abbas and intercepted multiple Iranian drones near the Strait of Hormuz. US crude futures surged nearly 2% to surpass $90 a barrel, while Brent crude rose by over 2%.
A US official informed Reuters that the overnight strikes were directed at an Iranian ground control station deemed a threat to US forces and commercial shipping in the vicinity of the Strait of Hormuz. Additionally, four Iranian one-way attack drones were reportedly brought down, according to the official.
The strikes were executed shortly after US President Donald Trump refuted claims made by Iranian state media, which suggested that Tehran and Oman would jointly oversee shipping through the Strait of Hormuz under a potential peace arrangement.
“Nobody’s going to control the strait,” Trump stated, emphasizing that the waterway would remain classified as international waters.
According to Iranian media, air defense systems were activated near Bandar Abbas early Thursday in response to the explosions.
The conflict, which has persisted for three months, has hindered shipping operations in the Strait of Hormuz, a vital energy chokepoint that previously managed approximately one-fifth of global oil and LNG trade. The Iranian Revolutionary Guard Navy reported that only 23 commercial vessels transited the Strait of Hormuz in the last 24 hours, a significant drop from pre-war levels of 125-140 ships daily.
Stay tuned for the latest updates on the conflict in West Asia:
