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Oil Surges as Iran-US Tensions Escalate
28 May
Summary
- Oil prices rose sharply following Iran's reported attack on a U.S. airbase.
- The incident followed earlier U.S. strikes near the Strait of Hormuz.
- U.S. crude oil stockpiles have seen a consistent decline for six weeks.
Oil prices experienced a significant increase of over 2% on Thursday, following reports of Iran's Revolutionary Guards targeting a U.S. airbase. This action was stated as a response to prior U.S. strikes in Bandar Abbas. Brent crude futures saw a rise of $2.85, reaching $97.14 a barrel, while U.S. West Texas Intermediate futures climbed $2.76 to $91.44.
These gains represent a reversal from the previous session, where both benchmarks had declined more than 5% due to potential U.S.-Iran negotiations. However, President Donald Trump reportedly rejected an imminent deal, and Iran stated its retaliatory strike. Analysts suggest these actions are part of diplomatic maneuvering.
Adding to market dynamics, U.S. crude oil stockpiles have decreased for six consecutive weeks, with a 2.8 million barrel drop last week. Official U.S. inventory data from the EIA is expected later today, delayed due to the Memorial Day holiday.
