Oil markets reacted sharply Thursday after Washington confirmed it shot down four Iranian attack drones and struck a drone‑control station. The action, the second clash in three days, raised concerns for U.S. forces and commercial ships navigating the Strait of Hormuz. Investors priced in geopolitical risk, pushing oil benchmarks higher. The episode comes as President Trump and officials claim peace deal is near, despite skepticism.

Brent crude for August delivery jumped nearly 4 percent to $96 a barrel, while the U.S. benchmark West Texas Intermediate rose 4 percent to $92 for July delivery. The surge reflects traders’ fears that any disruption in the Hormuz corridor could tighten global supply. Economies in Asia saw their stock indexes slide, with South Korea down almost 5 percent and Hong Kong, Japan and Taiwan each losing around 2 percent.

Gasoline prices slipped three cents to $4.46 a gallon, while diesel held at $5.58, still roughly 50 percent above pre‑conflict levels. The modest pump decline underscores the lag between crude moves and retail fuel, but the broader market reaction signals that any further escalation could quickly erode equity gains. Investors should monitor Hormuz traffic for the next price swing.