MW U.S. oil prices rise above $90 a barrel after fresh wave of attacks between U.S. and Iran
By Nora Redmond and Isabel Wang
The U.S. Central Command said it launched "self-defense strikes" on Iranian drone sites over the weekend.
U.S. oil prices were climbing above $90 a barrel on the first trading day of June after the U.S. and Iran exchanged a fresh round of strikes overnight, dashing hopes for an imminent peace deal between Washington and Tehran to end the war in the Middle East.
West Texas Intermediate's contract for July (CL.1) (CLN26) delivery was climbing over 3% to $90.12 a barrel, while Brent crude's August contract (BRN00) (BRNQ26) was up 2.7% to $93.56 a barrel, according to FactSet data.
The moves followed the U.S. Central Command announcing early Monday morning that it launched "self-defense strikes" on Iranian drone sites in the country's southern region, close to the Strait of Hormuz.
CENTCOM said the "measured and deliberate strikes" were retaliation for a U.S. drone being shot down by Iranian authorities over international waters, according to a post on X.
Iran's Islamic Revolutionary Guard Corps said it targeted a U.S. air base, which it claimed was used by the military to attack an Iranian communication tower, according to a Fars News Agency report. Kuwait's foreign ministry denounced what it referred to as "heinous Iranian attacks" on its territory. Also on Monday, Israeli Prime Minister Benjamin Netanyahu ordered strikes on the southern suburbs of Beirut, the capital city of Lebanon.
The escalation in attacks over the weekend dashed optimism for investors who had been hoping for an imminent peace deal to end the war in Iran. U.S. and Iranian negotiators last week reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and launch negotiations on Iran's nuclear program, but President Trump has yet to give his final approval.
"We've never felt closer to a deal but potentially never felt closer to it all falling apart with isolated strikes becoming more frequent," Jim Reid, head of macro research and thematic strategy at Deutsche Bank, wrote in a note on Monday.
"It's hard to imagine remaining in limbo for much longer given that if the Strait of Hormuz remains closed into mid-summer it will at some point likely lead to a non-linear tipping point of economic stress," he said.
Axios reported on Saturday that President Donald Trump requested several changes to the deal discussed with Iranian negotiators on Friday, including what to do about Tehran's nuclear concessions.
-Nora Redmond -Isabel Wang
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June 01, 2026 08:55 ET (12:55 GMT)
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