U.S., Iran skirmish keeps oil prices elevated

May 08, 2026 (MLN): Oil prices remained steadfast on Friday following a military exchange between the United States and Iran in the Strait of Hormuz, raising fresh concerns that the tenuous ceasefire between the two nations may be collapsing and threatening stability along one of the globe's most vital energy corridors.

Currently, Brent crude futures are slightly lower by $0.02, or 0.02%, to $101.77 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures are up by $1.23 or 1.30%, to $96.04 per barrel by [9:51 am] PST.

Both Washington and Tehran traded blame over who fired first in the Strait of Hormuz incident, deepening tensions surrounding a ceasefire agreement that had already been fraying under repeated claims of violations by both sides.

The confrontation unfolded as Iran was said to be weighing a U.S. peace proposal aimed at bringing the conflict to a close, CNBC reported.

President Trump, posting on Truth Social, declared that American forces had destroyed the Iranian assets involved in the clash including small boats and drones and issued a stark warning that further military action would follow if Tehran refused to reach a nuclear agreement.

Shortly after, President Trump suspended "Operation Freedom," the U.S. naval campaign designed to escort commercial ships safely through the strategically critical waterway.

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