3 min readUpdated: May 26, 2026 01:59 PM IST
Global oil prices rose on Tuesday after renewed US military strikes in the Middle East overshadowed hopefulness of the deal between the US and Iran.
Brent crude futures climbed more than 1 per cent in early Asian trading to touch USD 98 per barrel, while the West Texas Intermediate (WTI) crude also edged higher, surpassing USD 91.5 per barrel, though it remained below Friday’s closing levels, according to Oilprices.com.
The gains came as diplomatic efforts increased in Doha, where Iran’s foreign minister and top negotiator held discussions with Qatar’s prime minister regarding a potential agreement with US aimed at ending the ongoing conflict. Both Iran and US underplayed expectations of an immediate breakthrough, though.
Multiple global reports stated that negotiators were also considering a proposal to reopen crucial Strait of Hormuz roughly 30 days after any agreement is finalised. The waterway is one of the world’s most important oil transit routes, carrying nearly a fifth of global crude supplies.
Fresh strikes against Iran clouds Hormuz future
The positivity faded after US Central Command confirmed fresh strikes in southern Iran on Monday. The operations reportedly targeted missile launch sites and boats allegedly attempting to deploy naval mines, with Washington describing the actions as defensive measures.
Market analysts warned that uncertainty surrounding the conflict and the status of the Strait of Hormuz could continue to fuel volatility in energy markets.
Strategist at Commonwealth Bank of Australia Joseph Capurso was quoted by Reuters, “There’s still far too much uncertainty around what a potential deal would actually involve and when shipping through Hormuz could fully resume.”
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Global bourses remain on Edge
Asian stock markets delivered a mixed performance amid the geopolitical tensions. MSCI’s broad Asia-Pacific index outside Japan rose 0.8%, while Japan’s Nikkei slipped 0.2%. US futures also pared earlier gains, reflecting cautious investor sentiment.
Currency markets saw the US dollar steady on renewed safe-haven demand. The euro and British pound weakened slightly, while the Japanese yen remained largely unchanged against the dollar.
Bond markets were comparatively stable after last week’s selloff triggered by fears that repeatedly high oil prices could spark inflation pressures and delay interest rate cuts globally.
Meanwhile, gold prices eased 0.5% as investors balanced geopolitical risks against expectations of tighter monetary policy in major economies.
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Trump says ‘no hurry’ to close peace deal
US President Donald Trump said over the weekend that a peace agreement had been mostly negotiated, including a potential memorandum of understanding that could pave the way for reopening the Strait of Hormuz.
However, he later noted that he had directed negotiators “not to hurry into any agreement”, stressing that discussions were still underway.
The Strait of Hormuz, had handled nearly one-fifth of the world’s oil and liquefied natural gas shipments before the conflict began.
