Oil gains as US strikes raise Gulf tensions

U.S. Central Command (CENTCOM) said it carried out self-defense strikes in southern Iran on May 25, 2026. The operation targeted missile launch sites and boats that U.S. forces said were attempting to emplace mines.

According to CENTCOM, the action was taken "to protect our troops from threats posed by Iranian forces." Military officials described the strikes as limited and framed them as part of ongoing efforts to safeguard personnel in the region.

CENTCOM also stated that U.S. forces were "using restraint during the ongoing ceasefire." The command did not specify the precise locations of the sites hit beyond identifying the area as southern Iran.

Iranian media reported explosions in Bandar Abbas and nearby coastal areas along the Strait of Hormuz on Monday. The reports did not provide detailed casualty or damage assessments in the initial coverage.

Bandar Abbas is a major port city situated on the Strait of Hormuz, a critical channel for global oil shipments. The reported blasts in this area coincided with news of the U.S. strikes announced by CENTCOM.

As military developments unfolded, Reuters reported that Iran's top negotiator and its foreign minister were in Doha on Monday. They were holding talks with Qatar's prime minister.

According to Reuters, the discussions focused on a potential memorandum of understanding with the United States aimed at halting the war. The talks in Doha took place while CENTCOM emphasized that it was acting in self-defense under an ongoing ceasefire.

The overlap between the reported negotiations and the U.S. military action underscored the complex mix of diplomacy and security operations shaping the current phase of the conflict.

Financial markets responded quickly to the latest headlines from the Gulf region. Reuters reported that Brent crude futures (UKOIL) rose $1.40, or about 1.5%, to $97.56 a barrel in early Asian trade at 0006 GMT after the U.S. strikes.

In the same update, Reuters said U.S. West Texas Intermediate crude (USOIL) was at $91.25. The moves reflected heightened concern among traders about potential disruption risks in and around the Strait of Hormuz following the reported strikes and explosions.

Market commentary cited by Reuters linked the price reaction to fears that renewed military activity could complicate or delay diplomatic efforts to secure a broader halt to the conflict.

Headlines across major outlets highlighted the connection between the U.S. strikes and shifting market sentiment. The Financial Times flagged U.S. strikes on Iranian missile sites, while AP described Asian shares and oil prices as mixed after the action in southern Iran.

Reuters noted that political figures were signaling that any Iran-related deal could take days, while some equity markets, including Indian shares, opened lower as investors weighed the impact of the strikes on Middle East peace prospects.

The Independent reported that oil prices rose after the latest U.S. strikes, describing how hopes of an imminent Iran peace deal had been hit by the renewed military activity. Together, these reports reflected investor focus on both security risks and the trajectory of negotiations.