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Amid escalating geopolitical risks in the Middle East, crude oil prices rebounded following new U.S. military strikes on Iranian sites, sparking immediate concerns over supply security. According to reports, this escalation overshadowed previous diplomatic progress and revived fears of potential disruptions in the Strait of Hormuz. The upward trend was further bolstered by falling U.S. inventories and a bullish market structure for both WTI and Brent futures.
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Sign InThis price recovery occurs as market data shows mixed performance across global energy sectors, with investors closely monitoring the reactions of majors like Saudi Aramco and ExxonMobil. Compared to the previous quarter, analyst research indicates that the geopolitical risk premium has returned as a primary price driver after a period focused on Chinese demand. Furthermore, the U.S. Manufacturing PMI released on May 21, 2026, stood at 55.3, supporting expectations for stable industrial energy demand per market data.
Traders should closely watch current price levels as oil contracts settled higher alongside significant economic data as of May 28, 2026. Looking ahead at the economic calendar, the market awaits official crude inventory data to confirm the extent of the U.S. supply tightening. Additionally, upcoming central bank communications, including a scheduled speech by Lagarde, will be pivotal in determining dollar trends that directly impact commodity pricing.