Brent crude oil surged nearly 2% after the US intensified its attacks on Iran, as markets awaited the Hormuz deal.

Brent crude oil surged nearly 2% to $97.56 per barrel after plummeting 7% the previous day following further US attacks on Iran. The market is also watching the Hormuz trade deal closely.

On May 26, 2026, at 11:36 AM, Reuters reported that Brent crude oil prices rose nearly 2% in early Asian trading on Tuesday after the United States launched further attacks in southern Iran, citing self-defense. This fueled continued market concerns that the conflict in the Middle East could be prolonged, as negotiations to end the war remained inconclusive.

At 00:06 GMT, Brent crude oil prices rose $1.40, or 1.5%, to $97.56 per barrel, after falling as much as 7% the previous day.

US West Texas Intermediate (WTI) crude oil was at $91.25 per barrel, slightly up from Monday's last trading level, but still down $5.30, or 5.5%, from Friday's closing price. There was no official trading in the US market on Monday due to the Memorial Day holiday.

The U.S. Central Command (CENTCOM) revealed that it had struck multiple targets in southern Iran, including a ship attempting to lay mines and a missile launch site, stating that the operation was to protect U.S. forces from Iranian threats.

Iranian media reported on Monday that explosions were heard in Bandar Abbas and coastal areas near the Strait of Hormuz, a vital global energy shipping route.

Since the war began, Iran has restricted almost all non-Iranian ships from entering and leaving the Persian Gulf, disrupting roughly 20% of global oil and gas shipments and driving energy prices up by more than 50%.

Meanwhile, a high-level negotiating team and Iranian foreign minister traveled to Doha, Qatar, to discuss with the Qatari prime minister the possibility of reaching an agreement with the United States to end the war that has lasted more than three months.

Both Washington and Tehran have stated that progress has been made in drafting a Memorandum of Understanding (MOU) that will provide a framework for a ceasefire and allow both sides 60 days to negotiate a comprehensive agreement.

Previously, Japan's Nikkei newspaper reported, citing Middle Eastern diplomatic sources, that under the agreement, Iran would clear mines in the Strait of Hormuz within 30 days before allowing ships from all countries to navigate freely and safely, and ending the collection of passage fees.

Tim Waterrer, head market analyst at KCM Trade, said investors are heavily betting that negotiations will lead to the release of the oil tankers that have been stranded in and around the Strait of Hormuz for months.

Shipping tracking data also indicates that in recent days, at least three liquefied natural gas (LNG) tankers have passed through the Strait of Hormuz, bound for Pakistan, China, and India. In addition, a supertank carrying crude oil from Iraq to China, which had been stranded for nearly three months, has also been able to depart.

However, uncertainty remains after President Donald Trump reiterated on Monday that Iran must provide the United States with enriched uranium for destruction.

Tony Sycamore, a market analyst at IG, said the latest developments are a clear reminder that a deal can collapse at the last minute, just like the five previous unsuccessful negotiation attempts.

Reference: reuters.com

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