Oil prices jumped more than 3%

2026, May 28

Iran

Oil prices jumped more than 3% amid escalating conflict in the Middle East, especially after renewed U.S. strikes on Iran, missile and drone incidents near Kuwait, and intensified Israeli attacks in Lebanon increased fears of wider regional disruption.

Benchmark crude prices rose sharply:

Brent crude climbed above roughly $89 per barrel.

West Texas Intermediate (WTI) moved toward the mid-$80s range.

The biggest driver is concern over the Strait of Hormuz — the narrow waterway between Iran and Oman through which about 20% of global oil shipments normally pass. Traders fear that further escalation could:

disrupt tanker traffic,

increase shipping insurance costs,

slow Gulf exports,

or trigger partial blockades and military escorts.

Markets are also reacting to:

reports of drone activity near Gulf shipping lanes,

warnings from Iran-linked groups,

and uncertainty over whether the U.S.–Iran ceasefire framework is effectively collapsing.

Energy analysts noted that oil markets had previously been relatively calm because traders believed neither side wanted a full regional war. The latest strikes have changed that calculation, at least temporarily.

Higher oil prices could quickly feed into:

fuel and transport costs,

airline operating expenses,

inflation pressures,

and shipping rates globally.