Oil sticks near $113 with U.S.-Iran tensions underpinning prices

May 05, 2026 (MLN): Oil prices are up, as investors weighed the risk of near-term supply disruptions against rapidly escalating tensions between the United States and Iran.

Currently, Brent crude futures are up by $5.7, or 5.3%, to $113.21 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are down by $2.11 or 2.25%, to $104.17 per barrel by [9:32 am] PST.

A fragile ceasefire between Washington and Tehran appeared to be on the brink of collapse, following reports that the United Arab Emirates was struck by Iranian drones and missiles.

The United States said its forces had sunk Iranian vessels in the strategically critical Strait of Hormuz, a key artery for global oil shipments.

U.S. President Donald Trump, in an interview with Fox News, warned that Iran would be “blown off the face of the earth” if it targeted U.S. ships assigned to safeguard commercial traffic in the waterway, according to CNBC.

In a separate post on Truth Social, Trump said a South Korean cargo ship had come under attack in the strait, adding that it “may be time” for South Korea to join the U.S.-led effort to secure the vital shipping route.

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