Crude oil prices moved higher in Asian trade on Friday as investors reacted to escalating tensions between the United States and Iran near the Strait of Hormuz. The geopolitical developments renewed concerns over global energy supply security and added volatility to commodity markets.
Brent crude futures for July delivery rose sharply during the session, while West Texas Intermediate (WTI) crude futures also recorded strong gains amid fears of potential disruption to oil shipments through the strategically important waterway.
As of 20:05 ET (00:05 GMT), Brent Oil Futures climbed 2.1% to US$103.37 per barrel, while WTI crude futures advanced 2.2% to US$96.90 per barrel.
WTI crude futures were trading at US$95.85 earlier in the session, up 1.10%, with prices moving within a day’s range of US$95.57 to US$98.02. Brent crude futures were quoted at US$101.42, despite showing some intraday volatility.
The latest gains followed a volatile trading session on Thursday, when oil prices eventually settled nearly 1% lower after fluctuating sharply throughout the day.
Market sentiment turned cautious after Iran accused the United States of targeting an Iranian oil tanker and another vessel entering the Strait of Hormuz. Tehran also alleged that U.S. forces carried out strikes on Qeshm Island and nearby coastal regions.
The U.S. military stated that its actions were conducted in self-defence after Iranian drones, missiles and small boats allegedly targeted three U.S. Navy destroyers transiting through the strategic waterway. Washington confirmed that no U.S. assets were damaged during the confrontation.
The Strait of Hormuz remains one of the world’s most critical energy transit routes, handling nearly one-fifth of global oil and liquefied natural gas supplies. Any disruption in the region has the potential to significantly impact international energy markets.
President Donald Trump attempted to calm investor concerns by downplaying the confrontation and stating that the month-old ceasefire between the United States and Iran remained intact.
Speaking to ABC News, Trump described the incident as “just a love tap” and reiterated that diplomatic understandings between the two countries were still holding. Iranian state media later reported that conditions in the affected areas had returned to normal.
Despite the reassurances, traders continued to monitor the situation closely amid fears that further escalation could threaten oil supply flows from the Middle East.
The latest exchange marked one of the most serious breaches of the fragile ceasefire brokered in April following weeks of heightened tensions between Washington and Tehran.
Diplomatic negotiations led by Pakistan are reportedly ongoing as efforts continue to secure a broader agreement aimed at reducing regional instability and avoiding further military escalation.
The geopolitical uncertainty also supported safe-haven demand in broader financial markets. The U.S. dollar strengthened, while equity futures faced pressure as investors turned cautious ahead of the closely watched U.S. non-farm payrolls report due later on Friday.
Commodity traders are expected to remain highly sensitive to developments in the Middle East, particularly any indications of disruption to shipping activity through the Strait of Hormuz.
Crude oil prices are likely to remain volatile in the near term as markets continue to assess geopolitical risks surrounding the Strait of Hormuz and the broader relationship between the United States and Iran. Traders will also monitor diplomatic developments and macroeconomic data for further direction on global energy demand and supply trends.
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Published on: May 8, 2026, 8:13 AM IST
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