In response, Iran’s Revolutionary Guards said that they struck a US airbase at around 4:50 a.m. local time, according to the country’s semi-official Tasnim news agency, though the IRGC did not disclose the location of the base.
US 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 struck 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 attempting to deploy mines along with missile launch sites. US Central Command said the operation was aimed at protecting American troops and commercial shipping routes.
Following the development, oil prices extended gains to trade over 3% higher. Brent crude, the global benchmark, surged more than 3% to $97.29 a barrel, while US West Texas Intermediate (WTI) crude jumped 3.42% to $91.71 a barrel.
In a note released late Wednesday, Citi said oil markets were stabilising as investors gradually moved away from pricing in severe supply disruption risks amid signs of progress in negotiations between Washington and Tehran.
Citi added that the sustained rise in crude prices was beginning to feed into broader inflation pressures through what it described as “second round effects”, pushing some central banks toward a more hawkish stance.On Wednesday, Indian stock market closed in the red, with benchmark indices Sensex and Nifty falling up to 0.2% as Iran-US tensions simmered and rupee declined. Broader markets however showed resilience, ending the session in the green.
Sensex declined 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 VIX, which measures volatility in markets fell 6% to 15.24.
The Indian stock market remained shut 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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