Oil surges 3% as US-Iran strikes revive Hormuz supply fears

Oil prices climbed more than 3 percent and U.S. stock futures slipped as reports of renewed American strikes inside Iran and an Iranian response near the Strait of Hormuz raised the prospect of interrupted energy shipments. Brent crude reached $97.16 a barrel and West Texas Intermediate touched $91.43, according to market data cited by CNBC on May 28, 2026. The moves reversed a prior session in which prices had eased after Secretary of State Marco Rubio described progress in talks and the White House rejected an Iranian claim of an impending memorandum.

The immediate trigger was an announcement by Iran’s Revolutionary Guards, carried by the semi-official Tasnim news agency, that forces had struck a U.S. airbase at roughly 4:50 a.m. local time; the location was not specified. A U.S. official told MS NOW that American forces had conducted fresh strikes on a military site believed to threaten both troops and commercial traffic through the Strait of Hormuz and had intercepted Iranian drones. Reuters separately reported the U.S. strikes, citing an unnamed official. Iranian state television had earlier stated that Tehran would restore prewar shipping levels through the Strait within one month of any agreement; the White House called that report a fabrication. President Trump said he would not permit Iran to control the waterway under any deal.

Traders now face two overlapping pressures: the risk that any sustained disruption lifts energy costs and feeds into broader inflation, and the possibility that diplomatic movement could quickly reverse those gains. Citi analysts noted in a late Wednesday note that markets were already pricing out worst-case supply scenarios, yet they warned that uncertainty over timing keeps central banks alert to second-round inflation effects. S&P 500 futures fell 0.2 percent, Nasdaq 100 futures dropped 0.3 percent, and Dow futures slipped 62 points in early Thursday trading. Asia-Pacific equities closed lower across most major indexes, with South Korea’s Kospi off 0.53 percent.

Investors are also watching the April personal consumption expenditures price index, scheduled for release at 8:30 a.m. ET, which economists expect to show a 0.5 percent month-over-month rise. Minneapolis Fed President Neel Kashkari reiterated that lowering inflation remains his top priority. The combination of live geopolitical developments and the data release leaves markets sensitive to any further statements from Washington or Tehran.