Brent Jumps 3.7% to $97.79 as US-Iran Attacks Resume and Ceasefire Unravels
Updated
Updated · Reuters · May 28
Brent Jumps 3.7% to $97.79 as US-Iran Attacks Resume and Ceasefire Unravels
9 articles · Updated · Reuters · May 28
Brent crude climbed 3.7% to $97.79 after Iran's Revolutionary Guards said they hit a U.S. airbase and warned of a stronger response to any further U.S. strikes.
The flare-up also drew in Kuwait, where the army said air defenses were intercepting hostile missiles and drones, underscoring that safe shipping through the Strait of Hormuz remains distant.
Asian markets sold off on the renewed conflict: MSCI's Asia-Pacific ex-Japan index fell 1.8%, South Korea's KOSPI dropped 2.7%, and S&P 500 e-mini futures lost 0.3%.
Safe-haven demand lifted the dollar index 0.2% to 99.506, while the U.S. 10-year yield rose 5.1 basis points to 4.53% on revived inflation fears from higher energy prices.
Washington also added Iran's Persian Gulf Strait Authority to its sanctions list, as ECB chief economist Philip Lane warned the energy shock could leave a lasting inflation impact even if the war eases.
As a US-Iran deal seems near, why did new military strikes erupt, and what happens next?
With the Strait of Hormuz choked, which nations face the most imminent threat of physical oil shortages?
Are central banks inducing a global recession by fighting an energy crisis with interest rate hikes?
2026 Hormuz Blockade Drives Oil to $103/Barrel: Economic, Humanitarian, and Geopolitical Impacts Unfold
Overview
In late May 2026, global energy markets are facing major volatility as oil prices surge due to renewed military tensions in the Middle East. This crisis began with recent American military strikes in Iran, which raised fears of long-term disruption to vital shipping routes through the Strait of Hormuz. The ongoing conflict has already caused gasoline prices to rise sharply, putting domestic pressure on leaders like President Trump. As the situation escalates, concerns grow about the stability of global supply chains and the broader economic impact, highlighting how quickly regional tensions can ripple through the world economy.