Oil Hits $95 as Hostilities Rise in Iran
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Global oil prices climbed sharply on 28 May 2026
after Iran announced it had targeted an American military base in retaliation
for recent U.S. airstrikes.
·
The latest exchange marked the second direct
confrontation within three days between Iran and the United States, heightening
fears of wider regional escalation.
·
A U.S. official said four Iranian drones were
intercepted on Wednesday because they threatened American forces and commercial
shipping near the Strait of Hormuz.
·
The renewed hostilities weakened expectations of an
imminent diplomatic breakthrough despite repeated assurances from Donald Trump
and his administration.
Oil
Prices Rise
·
Brent Crude rose more than 2% to around $95 per
barrel for August delivery.
·
West Texas Intermediate increased over 2% to
approximately $91 per barrel for July delivery.
·
Markets remain concerned about possible disruptions
to oil and gas shipments through the Strait of Hormuz, one of the world’s most
important energy transit routes.
Stock
Markets React
·
Futures linked to the S&P 500 indicated a
modest decline ahead of U.S. trading.
·
Asian equity markets weakened due to concerns over
energy imports and geopolitical instability:
o
Stocks in Japan and South Korea fell around 0.5%.
o
Shares in Hong Kong dropped more than 1%.
Fuel
Prices Remain Elevated
·
According to the AAA motor club, average U.S.
gasoline prices eased slightly by 3 cents to $4.43 per gallon.
·
Despite the small decline, gasoline prices remain
nearly 50% higher than before the conflict began.
·
Diesel prices also edged lower to $5.55 per gallon
but remain close to 50% above prewar levels.
·
Analysts noted that retail fuel prices typically
lag behind movements in crude oil markets by several days.
Oil
prices jumped and stocks wobbled on Thursday (28.05.2026) after Iran said it had
targeted an American military base in retaliation for U.S. strikes in Iran the day
before, marking the second exchange of hostilities in three days between the two
countries.
A
U.S. official said four Iranian drones it had knocked down on Wednesday posed a
threat to American forces in the region and to the little commercial shipping still
moving through the Strait of Hormuz, a critical transit route for oil and gas tankers.
The
latest confrontation renewed doubts about the prospects of a peace deal, despite
continued assurances by President Trump and administration officials that an agreement
is close.
Oil prices jump.
·
The
price of Brent crude, the global benchmark for oil, rose more than 2 percent to
about $95 a barrel for August delivery, currently the most heavily traded
contract.
·
West
Texas Intermediate crude, the U.S. benchmark, also jumped more than 2 percent
to $91 a barrel for July delivery, currently its most popular contract.
Stocks wobble.
·
Futures
on the S&P 500 pointed to a modest decline when stocks resume trading in
the United States on Thursday.
·
Stocks
in Asia, where countries import vast quantities of oil and gas, were mostly
down. Shares in Japan and South Korea fell half a percent, after recovering
from much deeper declines earlier in the day. Stocks in Hong Kong were down
more than 1 percent.
Gasoline prices pull back.
·
Gas
prices fell 3 cents on Thursday to a national average of $4.43 a gallon,
according to the AAA motor club. Since the war began, the cost of gas for
drivers has risen by nearly 50 percent.
·
Gas
prices don’t move in lock step with crude, usually trailing increases or drops
by a few days.
·
The
average price of diesel fell slightly to $5.55 on Thursday, but remains nearly
50 percent higher since the start of the war.