US strikes Iranian drone site as Hormuz ceasefire talks stall and oil prices climb
The U.S. military struck a drone ground station in Bandar Abbas and shot down four attack drones, hours after President Trump dismissed an Iranian report of a deal to reopen the Strait of Hormuz.
New US strikes in southern Iran
The U.S. military carried out new strikes overnight in Iran, targeting a ground control station in Bandar Abbas and shooting down four Iranian one-way attack drones that posed a threat around the Strait of Hormuz, a U.S. official told Reuters on Wednesday. The official, speaking on condition of anonymity, said the station was about to launch a fifth drone. The strikes came hours after President Donald Trump dismissed an Iranian state TV report that Iran and Oman would jointly manage shipping through the strait as part of a peace deal.
These actions were measured, purely defensive, and intended to maintain the ceasefire.
Iran's Tasnim news agency cited a military source saying the Islamic Revolutionary Guards Navy fired toward a U.S. oil tanker attempting to transit the strait, forcing it to turn back. The source said the U.S. military then struck open ground around Bandar Abbas, with no casualties or damage reported. Iranian media later reported that four vessels tried to transit the strait early Thursday and were turned back by warning shots.
Ceasefire extension and nuclear sticking points
Vice President JD Vance told reporters on Thursday that Washington was "not there yet" with Iran on an agreement but that the parties were close. The United States and Iran reached an agreement to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, pending Trump's approval, sources told Reuters.
It's hard to say exactly when or if the president is going to sign the MOU. We're going back and forth on a couple of language points.
Vance said sticking points concerned Tehran's enriched uranium stockpile and the question of enrichment. Secretary of State Marco Rubio told lawmakers on Tuesday that Iran has agreed to negotiate aspects of its nuclear program it previously refused to discuss, but said that was not a guarantee of a deal. Iran's semi-official Fars agency reported that messages on the possible deal had stopped a few days ago, with the last being Tehran's message over Lebanon.
Strait of Hormuz remains largely shut
After three months of upheaval, ship traffic through the Strait of Hormuz remains a fraction of its former levels. Before the U.S. and Israeli strikes on Iran at the end of February, roughly 70 vessels carrying crude oil, fuels, and LNG transited Hormuz daily, according to LSEG data. Since March 1, average daily transits have dropped to less than 7, and have averaged fewer than 6 vessels a day so far in May.
- U.S. and Israel launch strikes on Iran, conflict begins
- Daily Hormuz vessel transits drop below 7 from pre-war average of 70
- U.S.-Iran ceasefire takes effect
- U.S. carries out defensive strikes in southern Iran, Iran calls it a violation
- U.S. strikes Bandar Abbas drone station, shoots down four drones
- U.S. and Iran agree to extend ceasefire, pending Trump approval
- Iranian state TV claims U.S. aircraft downed in Bushehr; U.S. denies
Monthly crude oil export volumes from the Middle East have shrunk from an average of around 75 million metric tons before the crisis to around 36 million tons a month since March, data from Kpler shows. Total loadings for January through May 2026 are around 260 million tons, down sharply from just under 360 million tons for the same months in 2025. Exports from the U.S. have climbed to record highs, with total loadings during January through May up 16% from the year before to just over 86 million tons.
Oil prices react to strikes and stalled talks
Oil prices climbed about 1% to a one-week high on Tuesday, with Brent futures settling at $96.00 a barrel and WTI at $93.76. Prices had fallen more than 5% on Wednesday before rebounding after Reuters reported the new U.S. strikes, with U.S. crude futures gaining close to 2% to $90.38 a barrel in early Asian trade on Thursday. Brent crude rose 3% on Tuesday after the U.S. military carried out strikes in Iran.
The (oil) complex continues to gyrate wildly amid conflicting comments out of the White House and Iran as well as between Trump and Netanyahu.
The conflict has choked off about a fifth of global oil and LNG flows, driving prices up by 50% or more. The U.S. has maintained a blockade on Iranian ports while Iran has effectively halted most non-Iranian shipping in and out of the Gulf.
Downed aircraft claim and airline sanctions
Iran's state TV claimed early Friday that a U.S. aircraft was destroyed in Jam governorate in Bushehr, citing governor Masoud Tangestani. The U.S. Central Command denied the claim, posting on X that no U.S. aircraft were shot down and all air assets were accounted for. Separately, Treasury Secretary Scott Bessent announced the U.S. would shut down Iranian airlines' access to landing spots, refueling, and ticket sales.
Diplomatic cross-currents
Trump said on Monday that negotiations were continuing and there would be a deal over the next week to extend the April ceasefire and reopen the strait. At a cabinet meeting on Wednesday, he dismissed the Iranian report of a joint management deal with Oman, saying no single country would control the waterway. Israel kept up strikes on southern Lebanon on Tuesday, pressing its campaign against Hezbollah a day after Trump asked Netanyahu not to escalate, while Iran seeks a stop to Israel's incursion against its ally as part of any broader agreement.
