In an aerial view, a Valero refinery is seen in Corpus Christi, Texas, on May 5, 2026.
Brandon Bell | getty images
Oil resumed a rally on Friday after firing in the Strait of Hormuz between the US and Iran heightened fears that a fragile truce between the two countries was slipping away and threatened to continue disrupting shipping through one of the world’s most vital oil routes.
Brent crude futures, the international benchmark for July delivery, rose 1.20% to $101.26. US West Texas Intermediate futures for June delivery rose 0.88% to $95.64 a barrel
Washington and Tehran accused each other of launching attacks in the Strait of Hormuz, putting further pressure on a ceasefire agreement already weakened by allegations of repeated violations. The flare-up comes as Iran is reportedly reviewing a US proposal to end the war.
US President Donald Trump insisted in a call with an ABC News reporter later Thursday that the ceasefire would remain in effect, saying the strikes were “just a loving message.”
Oil prices since the beginning of the year
In a Truth Social post, Trump said US forces had destroyed Iranian targets involved in the clash, including small boats and drones. He also warned that Iran would face further military attacks if it failed to agree to a nuclear deal.
ANZ wrote in a note that market optimism over the potential for reopening of the Strait of Hormuz was dashed after reports emerged that Washington was preparing to resume naval operations escorting commercial vessels through the waterway. Prices suffered a “rollercoaster rise” as doubts emerged over US-Iran peace talks.
Trump later halted “Operation Freedom”, a US naval mission aimed at escorting commercial ships through the Strait of Hormuz.
“The risk of a breakdown in the proposed US peace deal will keep oil markets volatile,” ANZ Research experts said.
Citi analysts said they expected broader financial markets to stabilize despite recent Middle East-related instability, although the bank warned that the road to normalization was unlikely to be easy and that oil prices could remain high in the coming months.
– CNBC Kevin Breuninger Contributed to this report.
