On May 28, oil prices rose after the Islamic Revolutionary Guard Corps (IRGC) announced a strike on a US airbase.
Points of attention
- Oil prices surged by more than 2% after exchange of airstrikes between the US and Iran, impacting global markets.
- The rise in oil prices is attributed to continued fighting in the Middle East and uncertainties surrounding the negotiations between Washington and Tehran.
Oil prices rise amid continued fighting in the Middle East
Brent crude futures rose $2.38, or 2.52%, to $96.67 a barrel. West Texas Intermediate crude futures rose $2.24, or 2.53%, to $90.92.
Both grades fell more than 5% yesterday, hitting their lowest levels in a month, amid expectations of a possible agreement between the countries to end the war and restore the Strait of Hormuz.
Hours after US President Donald Trump denied reports that a compromise deal with Tehran was near, the IRGC said it had struck a US airbase in retaliation for US strikes near Bandar Abbas airport.
It appears that the exchange of airstrikes is part of the negotiating rhetoric, said PVM Oil Association analyst John Evans.
Washington and Tehran are negotiating a possible settlement plan that would see the Strait of Hormuz fully opened to shipping about a month after reaching a ceasefire.
