In response, Iran’s Revolutionary Guard said they attacked a US air base at around 4:50 a.m. local time, according to the country’s semi-official Tasnim news agency, although the IRGC did not reveal the base’s location.
U.S. officials said Central Command forces shot down four Iranian one-way attack drones that posed a threat near the Strait of Hormuz. The US military also attacked an Iranian ground control station in Bandar Abbas that was preparing to launch a fifth drone.
The latest escalation comes days after the US military carried out what it described as “self-defense strikes” in southern Iran, targeting vessels allegedly trying to lay mines along with missile launch sites. US Central Command said the operation was aimed at protecting US troops and commercial sea routes.
Following this event, oil prices extended their gains to trade up more than 3%. Brent crude, the global benchmark, rose more than 3% to $97.29 a barrel, while US West Texas Intermediate (WTI) crude jumped 3.42% to $91.71 a barrel.
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In a note published late Wednesday, Citi said oil markets were stabilizing as investors gradually weaned off serious supply disruption risks amid signs of progress in negotiations between Washington and Tehran.
Citi added that the sustained rise in crude oil prices was beginning to fuel broader inflationary pressures through what it described as “second-round effects,” pushing some central banks to take a tougher stance. On Wednesday, the Indian stock market closed in the red, with benchmark indices Sensex and Nifty falling as much as 0.2% as tensions between Iran and the United States escalated and the rupee fell. However, overall markets showed resilience and ended the session in the green.
Sensex fell 142 points to close at 75,868, while Nifty 50 fell 7 points to end the session at 23,907. This came even as India’s VIX, which measures volatility in markets, fell 6% to 15.24.
The Indian stock market remained closed on May 28 as both the National Stock Exchange of India and BSE Limited observed a trading holiday on account of Bakri Id. Earlier this month, exchanges were also closed on May 1 for Maharashtra Day.
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