2026.05.2813:06:25UTC+00Oil Climbs on Renewed US-Iran Tensions

WTI crude oil futures climbed 2% to $90.50 per barrel on Thursday, after renewed attacks in the Persian Gulf heightened concerns about energy supplies. Traders also monitored developments in US–Iran peace talks, which, if successful, could lead to a reopening of the Strait of Hormuz.

The United States reported destroying several attack drones near the strait, while Kuwait said it intercepted a missile launched toward its territory. Iran’s Revolutionary Guard stated that several vessels attempted to enter the Persian Gulf without authorization, forcing some to turn back, and warned it would respond forcefully to any attempts to disrupt traffic through Hormuz.

Despite the recent rebound, oil prices remain sharply lower on both a weekly and monthly basis, as markets continue to price in the possibility of a deal between Washington and Tehran. However, negotiations remain challenging, with persistent disagreements over Iran’s nuclear program and control of the Strait of Hormuz.

Separately, US crude inventories fell by 2.8 million barrels last week, according to data from the American Petroleum Institute (API).