Oil prices soar over US-Iran clashes

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.