World shares decline and oil prices gain more than $2 after US strikes
on Iran
[May 28, 2026] By
ELAINE KURTENBACH
World shares declined Thursday following more of what the U.S. military
said were defensive strikes against Iran.
Oil prices gained more than $2 a barrel after having dropped sharply a
day before.
In early European trading, Germany's DAX was nearly unchanged at
25,175.63 and the CAC 40 in Paris lost 0.4% to 8,172.84. Britain's FTSE
100 slumped 0.9% to 10,416.62.
The futures for the S&P 500 and the Dow Jones Industrial Average edged
0.1% lower.
U.S. officials said Central Command forces shot down four Iranian
one-way attack drones that posed a threat near the Strait of Hormuz. The
U.S. military also hit an Iranian ground control station in Bandar Abbas
that was about to launch a fifth drone. Those attacks followed others
earlier in the week.
Meanwhile, President Donald Trump asserted that Iran is “negotiating on
fumes” and said November’s midterm elections in the United States won’t
make him rush into a deal to end the nearly three-month-old conflict.
During Asian trading, Japan's Nikkei 225 lost 0.5% to 64,693.12, while
the Kospi in South Korea lost 0.5% to 8,185.29.
Hong Kong's Hang Seng index shed 1.3% to 25,006.16, while the Shanghai
Composite index edged 0.1% higher to 4,098.64.
In Australia, the S&P/ASX 200 declined 1.4% to 8,592.90, while Taiwan's
Taiex dropped 1.4%.
“Conflicting reports on the contours of a U.S.-Iran deal dampened risks
sentiments as markets grow increasingly wary about the possibility of a
deal,” Tan Boon Heng of Mizuho Bank in Singapore said in a commentary.
“While there is desire to maintain the ceasefire with both Iran and (asterisk)the)
U.S. toning down language on renewed attacks and persisting with
indirect channels of communication, it remains remarkably hard to
envisage how a compromise can be reached on key issues,” he said.
On Wednesday, U.S. stocks inched to more records after oil prices
declined more than 4%, easing pressure on consumers and businesses
worldwide.
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Asia markets index of Japan, South Korea and Australia is seen on a
screen at the foreign exchange dealing room of the Hana Bank
headquarters in Seoul, South Korea, Thursday, May 28, 2026. (AP
Photo/Ahn Young-joon)
 The S&P 500 edged up by less than
0.1% to 7,520.36 and the Dow industrials rose 0.4%, to 50,644.28.
The Nasdaq composite gained 0.1% to 26,674.73. All three indexes set
all-time highs.
Stocks of companies with big fuel bills helped lead the way on hopes
that lower oil prices will remove a big drag on their profits.
Norwegian Cruise Line Holdings climbed 6.1%, and United Airlines
rallied 6.3%. Delta Air Lines rose 3% and set an all-time high.
The price for a barrel of Brent crude oil fell 4.6% to $92.25 after
the ceasefire between the United States and Iran appeared to hold
despite the U.S. military launching what it called “self-defense”
strikes in southern Iran.
However, after the latest strikes, in early Thursday trading Brent
was up $2.14 at $94.44 a barrel.
A barrel of benchmark U.S. crude gained $2.12 to $90.80. On
Wednesday, it had fallen 5.5%, to settle at $88.68, back to where it
was in mid-April.
Prices have moderated, after surging to well over $100 a barrel, on
hopes that the United States and Iran can reach an agreement to
reopen the Strait of Hormuz and allow oil tankers to exit the
Persian Gulf for deliveries again.
Stocks have been able to run to records despite the painful
inflation and uncertainty caused by high oil prices largely because
companies have reported surprisingly strong profits for the start of
2026, and the forecast is for them to continue.
In other dealings early Thursday, the U.S. dollar rose to 159.50
Japanese yen from 159.51 yen. The euro slipped to $1.1611 from
$1.1626.
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