By Callum Keown
Oil prices rose early Thursday after the U.S. launched fresh strikes against Iran while both sides continue to work toward a peace agreement.
U.S. forces shot down Iranian drones and hit a drone-control station near Bandar Abbas, The Wall Street Journal reported, citing U.S. officials. The attacks came after Tehran launched drones at American and commercial ships in the Strait of Hormuz and are being characterized as defensive strikes, it added.
The cease-fire between the two countries is looking increasingly fragile but the market is still hopeful that a deal may soon be reached. Oil prices were higher but remained well below the $100 a barrel mark.
Brent crude futures, the international benchmark, rose 2.6% to $94.64, while West Texas Intermediate futures were up 2.7% at $91.06. Both benchmarks are up more than 55% this year but have fallen around 10% since the start of April.
"The bigger picture is that crude is still on course for a second weekly decline, suggesting investors are not yet pricing in a worst-case disruption," Hargreaves Lansdown analyst Matt Britzman said.
"For now, the market looks caught between short-term nerves over renewed hostilities and a lingering hope that both sides still have enough incentive to get energy flows moving," he added.
Write to Callum Keown at callum.keown@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 28, 2026 08:28 ET (12:28 GMT)
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