Oil rises as renewed U.S.-Iran tensions unsettle global markets

Crude oil prices moved higher on May 28 as renewed military actions involving the United States and Iran added a fresh geopolitical risk premium to global markets.

Brent crude climbed 2% to $96.13 a barrel after U.S. Central Command reported that Kuwait had intercepted missiles launched by Iran. The report followed earlier U.S. defensive strikes in southern Iran, reviving concerns that the conflict could further disrupt energy markets and intensify inflation pressures.

The market reaction extended beyond oil. Asian and European stock indexes mostly declined, while U.S. equity futures also fell as investors weighed the implications of a broader Middle East escalation. The jump in crude prices sharpened worries that higher energy costs could complicate the inflation outlook for major economies.

Gold, often watched during periods of market stress, moved lower rather than higher. Prices dropped 1.5% to below $4,400 an ounce, according to the research summary.

The latest moves left investors balancing two competing forces: resilient corporate and technology-sector momentum on one side, and a renewed geopolitical shock that pushed energy prices higher on the other.