Crude Oil Rebounds as Fresh US Strikes in Iran Cloud Strait of Hormuz Talks

Mumbai | 26 May 2026 

Crude oil prices rebounded on Tuesday as renewed US military action in Iran cast fresh doubt over an interim agreement between Tehran and Washington to reopen the Strait of Hormuz. 

Why Did Crude Oil Prices Rebound? 

The global benchmark Brent crude climbed above $98 per barrel after plunging more than 7% on Monday. West Texas Intermediate hovered near $92 per barrel. 

Indian markets moved in step. MCX crude oil prices rose as much as 1.90% to ₹8,779 per barrel on Tuesday. 

What Did the US Military Target? 

US forces targeted missile-launch locations and boats allegedly attempting to deploy mines, according to US Central Command. The action followed reports from Iranian media of explosions near the strait. 

The strikes reintroduced supply risk into a market that had sold off sharply at the start of the week. 

Where Do the US-Iran Talks Stand? 

The US and Iran have been discussing an arrangement to extend the ceasefire by roughly two months. Under the proposed terms, Washington would ease its blockade and Tehran would reopen the Strait of Hormuz. 

Disagreements persist. Tehran is insisting on retaining control over maritime traffic through the strategic passage, a position opposed by the US, Arab nations, and Europe. 

Negotiations are expected to continue for “a few more days” as both parties work on the wording of an initial agreement, Secretary of State Marco Rubio said on Tuesday. 

What Did Trump Say on Iran’s Uranium? 

Crude oil prices had already fallen sharply at the start of the week after President Donald Trump said the discussions were “going well,” while also warning of further military action if the talks failed. 

In a separate post, Trump stated that Iran’s enriched uranium should ideally be destroyed within the country itself, though he added that the material could alternatively be handed over to the US. 

Negotiations are expected to continue for a few more days as both sides work on the wording of an initial agreement. Stay updated on Indian equity and commodity markets. Read more market news on PL Capital. 

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