On May 28, world oil prices jumped by about 2% in the morning trading session, after Reuters reported that the US conducted more airstrikes targeting an Iranian military site overnight.
The new developments increase concerns about the risk of escalating tensions in the Middle East, despite Washington and Tehran still negotiating to end the three-month conflict.
According to early trading data, Brent oil price increased by 1.90 USD, equivalent to 2.02%, to 96.19 USD per barrel at 00:15 am. Brent oil contract for August delivery, currently the most traded contract, increased by 1.64 USD, equivalent to 1.78%, to 93.89 USD per barrel. July contract will mature on May 30th.
Meanwhile, US West Texas Intermediate (WTI) crude oil increased by 1.73 USD, equivalent to 1.95%, to 90.41 USD per barrel.
This recovery took place after both key oils simultaneously fell more than 5% in the previous session, to the lowest level in a month. The market was then affected by expectations that the US and Iran could reach an agreement to end the war and restore transportation through the Strait of Hormuz.
A US official told Reuters that the US military has conducted new airstrikes targeting a military facility in Iran. According to US officials, this location is believed to threaten US military forces as well as commercial maritime operations in the Strait of Hormuz.
The Strait of Hormuz is an important energy transportation route in the world. Military developments around this region often directly affect global oil prices due to the risk of supply disruption.
