Oil Markets Rattled by Fresh US-Iran Strikes Despite Fragile Ceasefire

ByEditor

May 28, 2026 #Bandar Abbas strike, #Donald Trump Iran deal, #global oil market crisis, #Iran retaliation, #Iran war latest, #Middle East tensions, #oil prices Iran conflict, #Strait of Hormuz crisis, #Tehran retaliation, #Trump Iran negotiations, #US Iran ceasefire, #US strikes Iran

Ololade Adeyanju/

The United States has carried out fresh military strikes inside Iran, deepening fears that a fragile ceasefire between Washington and Tehran could collapse despite ongoing diplomatic efforts to end months of conflict in the Gulf.

According to Reuters, US forces targeted a military facility in Bandar Abbas and shot down several Iranian drones near the Strait of Hormuz after American officials said the aircraft posed a threat to US forces and commercial shipping in the region.

Iran responded by claiming it had targeted American military bases in retaliatory strikes, though details of the attacks remain unclear.

Kuwait reportedly intercepted hostile aerial threats following the exchange, underscoring fears that the conflict could again spill across the wider Middle East.

Despite the renewed violence, officials quoted by the Financial Times said the increasingly strained ceasefire between the two sides was still technically holding, even as both countries accused each other of violating the truce.

The latest escalation comes as indirect negotiations involving Gulf mediators continue in an attempt to secure a broader agreement that could reopen the Strait of Hormuz fully and reduce pressure on global energy markets.

The narrow waterway remains one of the world’s most critical oil shipping routes.

Donald Trump, however, signalled that Washington would not be pressured into accepting what he considers an unfavourable deal with Tehran, despite mounting economic concerns linked to the conflict.

In comments reported by the Financial Times, the US president insisted that rising fuel prices and political pressure would not force him into a quick agreement with Iran, maintaining that preventing Tehran from obtaining nuclear weapons remained his administration’s overriding objective.

Trump also dismissed Iranian state media reports suggesting progress in negotiations over the future of the Strait of Hormuz, describing the claims as fabricated.

The renewed exchange of fire briefly rattled oil markets, reversing earlier optimism that a diplomatic breakthrough might be near.

Brent crude and West Texas Intermediate both rose sharply after reports of the latest strikes emerged, though prices later eased amid lingering hopes that talks could still prevent a wider regional war.

The conflict, which intensified after US and Israeli strikes on Iran earlier this year, has already disrupted shipping routes, strained regional alliances and increased concerns over global energy supplies.

Reports from Israeli and regional media, including The Times of Israel, indicate that both Israeli and American officials remain on high alert over the possibility of broader retaliation across the region.