Oil prices jump as US, Iran trade fire in Strait of Hormuz | Oil and Gas News
Brent Crude Prices Surge Following US-Iran Clashes in Strait of Hormuz
Published May 8, 2026
Oil prices surged amid renewed tensions between the United States and Iran, particularly following clashes in the strategic Strait of Hormuz.
Brent crude futures increased by as much as 7.5 percent during a volatile trading session Thursday, before settling at $101.12 per barrel as of 03:00 GMT. This figure reflects a decline from the day’s peak of $103.70.
The spike in prices follows an exchange of fire between US and Iranian forces in the Strait of Hormuz, a critical passage that accounts for approximately 20 percent of global oil and natural gas shipments. These incidents took place despite a ceasefire announced on April 7.
The US Central Command (CENTCOM) reported that it conducted retaliatory strikes against Iran after three US Navy guided-missile destroyers were targeted by Iranian missiles, drones, and small boats within the waterway.
In response, Iran’s Khatam al-Anbiya Central Headquarters accused the US of breaching the ceasefire by attacking an Iranian oil tanker and a second vessel in the region. The Iranian military also charged that US forces targeted civilian areas, including Qeshm Island.
US President Donald Trump downplayed the severity of the clashes, asserting that the ceasefire remained in place. In contrast, Iran’s state-run Press TV reported that the situation had returned to “normal.”
Shipping activity in the Strait of Hormuz has seen a significant decline since late February, amid fears of Iranian attacks on major oil tankers that are essential to global energy transport.
Currently, Brent prices are approximately 40 percent higher than before the onset of the conflict, with an estimated production shortfall of 14.5 million barrels per day.
In financial markets, Asian stock exchanges opened lower on Friday, reflecting the heightened tensions. Japan’s Nikkei 225, South Korea’s KOSPI, and Hong Kong’s Hang Seng Index each declined by over 1 percent. Meanwhile, on Wall Street, the benchmark S&P 500 dropped about 0.4 percent overnight after reaching an all-time high the previous day.
