Oil jumps following fresh clashes between US and Iranian forces

Published Fri, May 8, 2026 · 06:48 AM

OIL jumped following renewed clashes between US and Iranian forces, jeopardising the outlook for a deal to end the 10-week war.

West Texas Intermediate rose toward US$98 a barrel after a volatile session on Thursday (May 7), while Brent closed near US$100. US forces intercepted unprovoked Iranian attacks and responded with self-defence strikes as guided-missile destroyers transited the Strait of Hormuz, US Central Command said.

The global oil market’s focus remains on the strait, which has been effectively closed since the start of the conflict. That has triggered an unprecedented energy supply shock, with vital shipments of crude choked off and wells across the region shut in. The key waterway is under a double blockade, with Teheran obstructing traffic, while US prevents ships calling at or leaving Iranian ports.

Until traffic through the strait returns to at least a major percentage of where it was, “the downside in crude prices will remain limited,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities. BLOOMBERG