Oil prices rose nearly 3% to $103 a barrel on Friday after the firing in the key Strait of Hormuz waterway.
The US described the involvement as self-defense against unprovoked attacks, while Tehran accused Washington of violating a ceasefire in April by targeting Iranian ships and coastal posts.
Despite the clash, President Trump insisted that the ceasefire would remain in place, dismissing the attacks as a “chance of love”, while claiming that US forces “totally destroyed” several Iranian small boats.
The strait remains effectively blocked – a serious issue as more than 20% of global oil and gas typically passes through the waterway. Prices have increased from $70 to more than $100 since the conflict began.
Trump said negotiations with Iran were continuing and reiterated Washington’s demand that Tehran should never have nuclear weapons.
“The talks are going very well, but they have to understand that they will be very sad if it is not signed,” he told reporters.
“I believe they want this deal more than I do.”
Trump said this week that the war – which began on February 28 when the US and Israel attacked Iran – would be “over soon” as Washington proposed a framework for more detailed talks with Tehran.
In parallel with the aviation industry, rising fuel prices are taking a toll on airlines. IAG warned it could see fuel costs rise by €2bn, causing its shares to fall more than 5%.
Analysts suggest that although the situation has temporarily “returned to normal”, recent clashes indicate that a full resolution and a return to formal negotiations remains a distant possibility.
Chris Beauchamp, chief market analyst at investment platform IG, said: “The limited recovery in its shares since April limits market confidence in the prospect of a full recovery, at least until the conflict is fully resolved.
“But as last night’s clashes show, even the beginning of negotiations seems a long way off.”
