Oil Prices Today (May 8, 2026): Brent Crude Climbs Above $101 As Iran-US Tensions Fuel Hormuz Supply Fears

Oil prices are rising again, and once again geopolitics is at the heart of the rally.

Crude oil prices exploded on Friday, May 8th, reversing three days of losses on new US-Iran confrontations and concerns over the Strait of Hormuz, a key transshipment route for the world’s oil.

The recent attack underscores the continued fragility of the oil markets to Middle East tensions, especially threats to the Strait of Hormuz, the passage for most of the world’s crude oil and LNG supplies.

Also Read: US-Iran Exchange Fire In Strait of Hormuz, Several Tankers Attacked

Brent crude increases above $101

Brent crude futures, the global benchmark, increased more than 2% in trading to reach above the $100 level again.

Brent crude had traded around $101.20 a barrel, up 1.10%; the WTI crude rose 1.85% to $96.66 a barrel as of writing.

The two benchmarks had gained more than 3% throughout the trading session but had erased a portion of their earlier rise.

What is behind the recent surge in oil prices?

The row follows allegations by Iran and the US of an attack along the Strait of Hormuz, raising fears for the fragile month-long cease-fire.

Iran fired on U.S. Navy vessels transiting the strait in what it said was retaliation for a similar U.S. act.

Crucially, the timing of this confrontation comes after markets had been expecting progress on the reopening and stabilisation of shipping routes in the region. There had been some optimism earlier in the week that the U.S. And Iran was moving towards an agreement to de-escalate hostilities and allow a smoother flow of oil through the Strait of Hormuz. That optimism had helped trigger a sharp correction in crude prices over the past three sessions.

However, Friday’s events quickly changed the tone in the market.

Strategic importance of the Strait of Hormuz

Not a usual strait of navigation, it is one of the most strategic chokepoints in the world in terms of energy. It connects the Persian Gulf to the outside world and is the only way through which crude oil and LNG can be exported.

Any disruption in the strait immediately raises concerns about:

World oil supply shortages
Higher shipping and insurance costs
Higher world fuel prices
Oil prices and their impact on economies and inflation

That’s why oil traders are reacting so quickly.

Trump: No ceasefire yet

Significantly, U.S. President Donald Trump said after the confrontation that the ceasefire between the two sides is still intact. Trump said the recent strikes were “just a love tap”, indicating that the U.S. still sees room for a deal.

Also Read: US-Iran War Escalates: US Navy Destroyers Come Under Fire In Strait Of Hormuz, Trump Calls It ‘A Love Tap’

Meanwhile, there are also reports circulating that Iran is contemplating a U.S. Offer to end the conflict even though wider disputes over Tehran’s nuclear programme remain unresolved.

Oil set to finish the week down

Despite the rally in crude oil, Friday was set to end the week in the red. For the week both Brent and WTI were both down by about 6% after earlier hopes of an impending ceasefire eased off supply disruption fears.

That is representative of the dramatic shifts we have seen in the oil markets these past weeks, where every geopolitical update has sent the price soaring.

What a rise in crude oil prices will translate into for India

India is keenly monitoring the rise in the crude oil prices, as it imports most of its energy requirements. Continued rises in the crude oil prices can translate into a(n):

Increase in petrol and diesel prices
Depreciation in Rupee value
Rise in transportation and logistics prices
Higher shipping and airline prices

Moreover, increasing oil prices may have an adverse impact on the stock market, especially on those sectors like aviation, paints, chemicals and oil marketing companies.

What traders seek now

Now, market participants are eagerly watching:

Further military escalation in Gulf of Hormuz
Updates on the Iran-US ceasefire negotiations
Shipping activity in Gulf region
U.S. Weekly Crude Inventory Data
OPEC+ Supply Decisions

Crude prices have, for now, found support again, with traders re-entering the market on the back of geopolitical risk. The big question is whether this latest leap will develop into a sustained oil rally or prove to be just another temporary reaction in an energy market that is becoming more and more volatile.

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)