US oil prices jump on US-Iran hostilities
Finance

US oil prices jump on US-Iran hostilities

Published by Global Banking & Finance Review

Posted on May 7, 2026

1 min read

· Last updated: May 7, 2026

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Oil prices jump on renewed US-Iran hostilities

Market reaction to US-Iran tensions

Early trading surge in oil prices

BEIJING, May 8 (Reuters) - U.S. crude futures rose as much as 3% in early trading on Friday after renewed hostilities broke out between the U.S. and Iran.

West Texas Intermediate oil prices were trading up 2.58% or $2.45, at $97.26 a barrel, as of 2233 GMT, after initially gaining more than 3%.

Background on US-Iran conflict

US military actions

The U.S. military said it carried out retaliatory strikes on Iran on Thursday, targeting sites responsible for attacking U.S. forces.

Iran's response

Iran's military accused the U.S. of violating the ceasefire between the two countries, saying the U.S. had targeted two ships in the Strait of Hormuz and attacked civilian areas.

Previous session performance

Recent WTI contract settlement

The WTI contract had settled down 27 cents at $94.81 per barrel in the previous trading session.

Reporting credits

(Reporting by Colleen Howe; Editing by Chris Reese)

Key Takeaways

  • Escalated U.S.–Iran conflict sharply spikes oil prices amid supply concerns through the Strait of Hormuz (Reuters reporting).
  • The Strait of Hormuz remains a critical chokepoint—disruption may push Brent toward $130–145 if blockade continues (Business Standard analysis).
  • Market volatility persists as ceasefire hopes ebb and flow—oil markets remain highly sensitive to geopolitical headlines.

Frequently Asked Questions

Why did US oil prices rise on May 8?
US oil prices rose due to renewed hostilities between the US and Iran, increasing concerns over oil supply.
How much did West Texas Intermediate prices increase?
West Texas Intermediate oil prices gained more than 3% and traded at $97.18 a barrel.
When did the price jump take place?
The price jump happened in early trading on Friday, as of 2215 GMT on May 8.
Who reported and edited the news about the oil price surge?
The news was reported by Colleen Howe and edited by Chris Reese.

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