Iran Fires on Ships in Hormuz Strait, US Drone Allegedly Destroyed, Oil Prices Jump

Iranian forces fired warning shots at four vessels attempting to transit the Strait of Hormuz on May 28, 2026, escalating an already volatile standoff with the United States. The incident occurred near the strategic southern port of Bandar Abbas, where explosions were reported. Earlier on May 28, the U.S. struck Iranian drone facilities in the area, and Iran retaliated against a U.S. base. On May 29, a local official in Bushehr province claimed a U.S. military aircraft was destroyed, though Washington has not confirmed. The exchanges dashed hopes of a near-term de-escalation, lifting Brent crude as much as 4% before settling 1.8% higher at $96 a barrel. PVM analyst John Evans said the mutual strikes appear to be tactical negotiating pressure, but warned that once global crude inventories draw down, the market will be reminded that over 1 billion barrels of oil remain stranded behind the Strait of Hormuz, unable to reach international markets.