TLDR
- Brent crude fell over 4% to near $72 a barrel on Friday; WTI dropped 3% to around $69
- Shipping through the Strait of Hormuz reached its highest level since the Iran war began in late February
- Iran struck a Singapore-flagged container ship with an attack drone on Thursday
- The US responded Friday by hitting Iranian missile, drone storage, and coastal radar sites
- Oil prices partially recovered late Friday after the US strikes were announced
Oil prices fell sharply on Friday before recovering after the US launched military strikes on Iran, following a drone attack on a commercial vessel in the Strait of Hormuz.
🇮🇷🇺🇸 Iran HITS U.S. Base in Bahrain After Sirik Island Strike
The U.S. Fifth Fleet is headquartered in Bahrain. At dawn Saturday, June 27, Iranian drones struck Bahrain in answer to the U.S. attack on Iran's Sirik Island.
A projectile also hit an oil tanker off Oman, damaging… https://t.co/JTfllkJbss pic.twitter.com/ZZ0In9tY9d
— Ryan Rozbiani (@RyanRozbiani) June 27, 2026
Brent crude dropped more than 4% to hover near $72 a barrel during the regular session. West Texas Intermediate fell about 3% to around $69 — its first close below $70 since the Iran war began in late February. Both benchmarks have now fallen roughly 25–27% over the past month.
The early sell-off came as shipping traffic through the Strait of Hormuz reached its highest point since the conflict started. That eased fears about oil supply disruptions and pushed prices lower.
Why Oil Prices Fell
The US and Iran signed a 60-day memorandum of understanding last week, pausing the conflict. The deal includes terms for reopening the Strait of Hormuz to commercial shipping, along with nuclear talks in exchange for sanctions relief.
As ships began moving more freely through the strait, traders priced out some of the war premium that had built up in crude markets.
BOK Financial senior vice president Dennis Kissler warned on Thursday that the sell-off may be going too far. “While the Strait of Hormuz is moving oil, there still exists the possibility of mines in the area as well as rogue Iranian militia continuing to make threats on shipping lanes,” he said. “The latest sell-off in prices is likely overstating the true near-term fundamentals,” he added.
The Drone Strike That Changed the Day
On Thursday, Iran struck the Singapore-flagged container ship Ever Lovely with what the US described as a one-way attack drone. The ship sustained damage while transiting the strait.
President Trump said Friday he was unhappy with the attack. “I don’t like the fact that they took a shot,” he told reporters. “They shouldn’t be doing that.”
US Central Command said American aircraft hit Iranian missile and drone storage sites as well as coastal radar installations on Friday. It called the action a “powerful response to yesterday’s attack.”
Iran’s Islamic Revolutionary Guard Corps claimed its forces “successfully repelled the attack.”
The exchange raised fresh doubts about whether the ceasefire will hold. Trump had previously said he would resume military action if Iran violated the agreement’s terms.
Despite the strikes, ships continued to move through the strait on Friday. Central Command said it would keep providing safe passage coordination for commercial vessels.
One unresolved issue is whether Iran will charge fees for ships passing through Hormuz. Oman told European officials that some tolls may ultimately be required — a point of ongoing disagreement between Washington and Tehran.
Oil prices moved back above session lows late Friday after the US strikes were confirmed.
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