U.S. Military Claims Successful Interception of Iran's 'Surprise Attack'; Oil Prices Rebound 5%, U.S. Stock Futures Dip

The U.S. military announced late Tuesday (28th) Eastern Time that it had successfully intercepted a 'surprise attack' by Iran targeting U.S. forces stationed in the Middle East. As a result, West Texas Intermediate (WTI) crude oil futures surged nearly 5%, briefly surpassing $83 per barrel, halting a three-day losing streak. U.S. stock index futures declined slightly, with Dow and S&P 500 futures down about 0.1%, and Nasdaq futures falling 0.44%.

U.S. Central Command (CENTCOM) stated on social media platform X: 'The Islamic Revolutionary Guard Corps (IRGC) of Iran launched multiple ballistic missiles from within Iran, attempting a surprise attack on U.S. forces in the Middle East.' The attack occurred at 5:45 PM Eastern Time, but all missiles launched by Iran were successfully intercepted.

Meanwhile, Iran-backed Iraqi militia groups launched drones at oil facilities in eastern Saudi Arabia for the second consecutive day, increasing pressure on the kingdom. Saudi Arabia is currently facing a maritime blockade that restricts its crude oil exports.

Saudi Arabia's Ministry of Defense said it successfully intercepted the incoming drones on Tuesday but did not confirm whether any oil facilities were damaged.

International oil prices had earlier closed at their lowest levels in two weeks, as Iran began negotiations with Saudi Arabia and Oman over the Strait of Hormuz. Brent crude futures fell 4.8% on Tuesday to $84.09 per barrel, while WTI crude dropped 4% to $79.26 per barrel.

This marked the third consecutive day of declines in oil prices, reflecting the absence of renewed military conflict between the U.S. and Iran in recent days, with markets cautiously optimistic about diplomatic progress.

Oil prices have been highly volatile this month, as U.S.-Iran tensions escalated again, spreading conflict into the Red Sea. Additionally, Yemen's Houthi movement, backed by Tehran, threatened to blockade Saudi ports, briefly reigniting upward price pressure.

However, Iran has indicated to Oman that a proposed 50-50 split of control over the Strait of Hormuz shipping lanes is insufficient to meet Iran's core demands. Iranian Deputy Foreign Minister Kazem Gharibabadi, in a state television interview, stated that the entry route into the Persian Gulf must be fully controlled by Iran, and Iran should also hold partial control over the exit route.

On Tuesday, President Donald Trump met with Israeli Prime Minister Benjamin Netanyahu in an effort to prevent Israel from resuming bombing campaigns against Iran. Israel signaled support for negotiations, stating that all parties prefer the 'easy way'—resolving issues through talks—over the 'difficult way' of military action.

Market focus remains on crude oil supply stability, as shipping through the Strait of Hormuz remains constrained. Goldman Sachs analysts noted in a Tuesday report that if the Strait fully reopens in the final quarter of the year, Brent crude could fall to $80 per barrel by year-end.

However, Goldman Sachs also warned that continued disruptions in Red Sea shipping and the risk of attacks on Saudi oil facilities could become new factors pushing up crude and refined product prices.