HONG KONG, May 28, 2026 (BSS/AFP) - Oil prices bounced higher on Thursday while Asian stocks fell, as new US strikes on Iran marked the latest test of a shaky ceasefire in the Middle East war. The price jumps erased much of Wednesday's declines on the hopes of an imminent deal to end the conflict that has all but halted shipping through the crucial Strait of Hormuz for months. An American official said the military had shot down four Iranian drones and struck a control centre in the southern city of Bandar Abbas. The official, speaking to AFP on condition of anonymity, described the latest actions as "measured, purely defensive, and intended to maintain the ceasefire". Tehran's state media said Iranian forces had fired at four ships in the strait, while Kuwait said its air defences were responding to missile and drone attacks. The developments came despite an Iranian official saying renewed hostilities with the United States were unlikely, and a threat from US President Donald Trump to "finish the job" if a peace deal was not reached. The mixed signals underscored the fragile state of talks aimed at ending the Middle East war, which has profoundly shaken global energy markets. Brent North Sea crude, the main international benchmark, rose more than two percent during Thursday trade to nearly $97 a barrel, while the main US contract, WTI, increased at a similar pace to over $91 a barrel. Stock markets across Asia saw losses on Thursday, with main benchmarks in Taipei and Sydney closing more than one percent lower and Hong Kong on track to join them during the final hour of trading. Tokyo and Seoul saw more moderate declines, while Shanghai was the sole major exchange to buck the trend, finishing the day up 0.1 percent. The drops came after a strong day for global stocks on Wednesday, as investors, bullish on artificial intelligence, looked past the conflicting headlines on Iran. In Asia, South Korean chipmaker SK hynix hit a $1 trillion market capitalisation, placing it alongside regional tech heavyweights Samsung Electronics and TSMC, as well as US chipmaker Micron. The tech surge has coincided with a persistent spike in energy prices, which has threatened several major Asian economies that rely on oil shipments from the Middle East. Economists warn that central banks may have to raise interest rates if inflation worsens as a result of the war, increasing borrowing costs and potentially weighing on economic growth. On Wednesday, "every headline pulled the market in a different direction, leaving traders with the same conclusion they have been wrestling with for weeks", said Stephen Innes at SPI Asset Management. "The Strait may eventually reopen fully, but until there is something more concrete than draft frameworks and political theatre, every barrel remains hostage to headline volatility, even if sub-$100," he said. - Key figures at around 0715 GMT - Brent North Sea Crude: UP 2.7 percent at $96.79 a barrel West Texas Intermediate: UP 2.8 percent at $91.13 a barrel Hong Kong - Hang Seng Index: DOWN 1.3 percent at 25,009.19 points Tokyo - Nikkei 225: DOWN 0.5 percent at 64,693.12 (close) Shanghai - Composite: UP 0.1 percent at 4,098.64 (close) Euro/dollar: DOWN at $1.1617 from $1.1629 on Wednesday Pound/dollar: DOWN at $1.3411 from $1.3434 Dollar/yen: DOWN at 159.47 from 159.53 yen Euro/pound: UP at 86.63 from 86.59 pence London - FTSE 100: UP 0.1 percent at 10,505.01 (close) New York - DOW: UP 0.4 percent at 50,644.28 (close)