US Strikes Iran Near Bandar Abbas, Trump Rejects Negotiation Terms, Threatens Oman

The US launched new strikes near Bandar Abbas, Iran, on May 27, 2026, targeting a military site allegedly threatening US forces and maritime traffic in the Strait of Hormuz. Iran's IRGC retaliated by targeting the US air base that originated the attack. President Trump rejected a leaked Iranian outline of negotiation terms, including a demand for $300 billion in reparations, and threatened to bomb Oman if it cooperates with Iran on strait management. The US sanctioned Iran's newly founded Persian Gulf Strait Authority, complicating vessel passage. Military experts predict a full-bore US-Israel campaign after the Hajj ends on May 30. Trump is draining the Strategic Petroleum Reserve, selling 17.8 million barrels below market to suppress oil prices, risking depletion by end of July. A Brookings study warns temporary buffers will exhaust by mid-July, potentially driving Brent crude to $150 per barrel. Israel continues strikes in Lebanon, with over 120 airstrikes on Tuesday, complicating any deal as Iran demands ceasefire inclusion.