Oil prices rose about 1% on Friday, May 8, 2026, after renewed fighting broke out between the United States and Iran.
The clash threatened a shaky ceasefire and dashed hopes for progress on the reopening of the Strait of Hormuz, a key transit route for oil and liquefied natural gas.
Brent crude futures were up $1.20, or 1.2%, at $101.26 a barrel as of 0356 GMT, while West Texas Intermediate (WTI) U.S. crude futures rose by 85 cents, or 0.9%, to $95.66 a barrel.
The benchmarks were up more than 3% at market open.
The gains snapped three days of decline on reports this week that the U.S. and Iran were close to agreeing to a peace deal that would end the fighting but put off larger issues around Iran’s nuclear programme. For the week, both contracts are still set to fall about 6%.
“The market is on the cusp of a complete breakdown. Price formation is no longer anchored in a pragmatic reading of the war’s trajectory or the physical realities in the Strait of Hormuz,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
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Friday’s jump in prices followed Iran’s accusations that the United States violated the month-long ceasefire between them, while the U.S. said its strikes were retaliatory after Iran fired on U.S. Navy vessels transiting the Strait of Hormuz on Thursday.
Iran’s military said the U.S. had targeted an Iranian oil tanker and another ship and civilian areas in the strait and on the mainland, Reuters reported.
Despite the renewed combat, U.S. President Donald Trump told reporters later on Thursday the ceasefire was still in effect.
