Oil prices increased on 8 May as conflicts resumed between the US and Iran, putting a fragile ceasefire at risk and hindering efforts to reopen the Strait of Hormuz, a significant passageway for oil and liquefied natural gas (LNG), reported Reuters.
By 06:50 GMT, Brent crude futures had risen by $0.67, or 0.67%, reaching $100.73 per barrel (bbl).
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Meanwhile, West Texas Intermediate (WTI) US crude futures had gained $0.45, or 0.47%, to $95.26/bbl.
Both benchmarks rose by more than 3% at the market’s opening.
The increase in prices ended a three-day decline following reports earlier in the week suggesting that the US and Iran were nearing a peace agreement to halt hostilities, although it would delay addressing broader concerns regarding Iran’s nuclear programme.
Despite the rise, both contracts are projected to decline by around 6% for the week.
Oil prices rose on Friday after Iran accused the US of breaching their month-long ceasefire.
The US, meanwhile, stated its strikes were in retaliation for Iran’s attack on US Navy vessels in the Strait of Hormuz on Thursday.
The Iranian military reported that US forces targeted an Iranian oil tanker, another ship, and civilian regions in the strait and onshore.
Despite the renewed conflict, US President Donald Trump informed reporters on Thursday that the ceasefire remained in place.
The exchange of fire occurred while Washington was awaiting Iran’s response to the latest peace proposal, which did not address key issues such as the US demand to reopen the Strait of Hormuz.
This strait previously handled a fifth of the world’s oil and LNG supplies before hostilities began in February 2026.
Additionally, the US Commodity Futures Trading Commission is investigating $7bn in oil price trades that occurred in advance of significant Iran-related announcements by President Trump, according to a Reuters report.
Most of these trades involved short positions, which are bets on prices declining, carried out on the Intercontinental Exchange and the Chicago Mercantile Exchange.
These were placed before President Trump’s announcements on attack delays, the ceasefire, or other policy changes concerning Iran, leading to a drop in oil markets.
