Oil prices jump after Iran strikes US air base
Photo: Oil prices rose by more than 2% (Getty Images)
On Thursday, May 28, oil prices rose after the Islamic Revolutionary Guard Corps (IRGC) announced an attack on a US airbase, according to Reuters.
Brent crude futures rose by $2.38, or 2.52%, to $96.67 per barrel. West Texas Intermediate (WTI) crude futures rose by $2.24, or 2.53%, to $90.92.
The day before, both grades fell by more than 5%, dropping to their lowest level in a month. This occurred amid expectations of a likely agreement between the countries to end the war and reopen the Strait of Hormuz.
The agency reports that a few hours after US President Donald Trump denied reports of a compromise agreement with Tehran, the IRGC announced that it had struck an American airbase. This came in response to US military strikes near Bandar Abbas.
"It appears that the exchange of airstrikes is part of the negotiating rhetoric," says John Evans, an analyst at the PVM Oil Associates.
Washington and Tehran are negotiating a potential settlement plan that calls for the full reopening of the Strait of Hormuz to shipping approximately one month after a ceasefire agreement is reached.
Iranian President Masoud Pezeshkian has ordered the restoration of access to the international internet following nearly 90 days of widespread restrictions and blockages in the country.
The White House called a report by Iranian state television about an alleged draft memorandum between Tehran and Washington pure fiction.
