Oil prices turned higher again after a sharp selloff in the previous session. Brent futures rose more than 2% on the morning of May 26, climbing above $98 a barrel after falling roughly 7% the day before. WTI traded near $92, though it remained about 5% below Friday’s close because there was no official U.S. settlement on Memorial Day.

The rebound followed new U.S. strikes on targets in southern Iran. According to CENTCOM, U.S. forces hit boats allegedly attempting to lay mines and missile launch sites. Washington described the actions as defensive and said they were intended to protect U.S. forces. WSJ also reported that U.S. officials still view the strikes as consistent with the current ceasefire framework.

A day earlier, oil had dropped on hopes that the U.S. and Iran were close to a deal that could reopen the Strait of Hormuz. Under normal conditions, the route carries about one-fifth of global oil and LNG flows. Reuters, Axios and Nikkei reported that negotiators are discussing a 60-day ceasefire extension, mine-clearing within roughly 30 days, and a return to free navigation through the strait.

The latest strikes reminded traders that the deal is not done. Iran’s nuclear program and the terms of any final agreement remain key obstacles. For now, crude is trading not just on supply and demand, but on every signal from negotiations and military activity around Hormuz.