TLDR
- Brent crude rose 0.5% to $100.51 a barrel Friday; WTI rose 0.4% to $95.19
- U.S. and Iranian forces exchanged fire in the Strait of Hormuz Thursday
- Trump called the exchange a “trifle” and said the cease-fire remains in place
- The U.S. is considering restarting “Project Freedom” to escort ships through the Strait
- Oil prices are still down on the week, falling from around $108 Brent at Monday’s open
Oil prices moved higher Friday morning after U.S. and Iranian forces exchanged fire in the Strait of Hormuz, putting pressure on an already fragile cease-fire between the two countries.
Brent crude futures were up 0.5% at $100.51 a barrel in early European trading. West Texas Intermediate futures rose 0.4% to $95.19 a barrel.
Earlier in the session, both benchmarks had risen more than 2%. Brent briefly topped $102 a barrel in Asian trading before trimming those gains.
Despite the move higher Friday, oil is still down sharply on the week. Brent opened Monday around $108 a barrel, and WTI was close to $100. That puts Brent on course for a weekly loss of roughly $7.
The Strait of Hormuz is one of the most important oil shipping routes in the world. Around 20% of the world’s oil normally passes through it.
What Happened in the Strait
Iran launched missiles, drones, and small-boat attacks at U.S. warships near the Strait of Hormuz, according to a statement from U.S. Central Command reported by the Wall Street Journal.
🚨 "Three World Class American Destroyers just transited, very successfully, out of the Strait of Hormuz, under fire. There was no damage done to the three Destroyers, but great damage done to the Iranian attackers… just like we knocked them out again today, we’ll knock them… pic.twitter.com/e0sTYzKjTE
— The White House (@WhiteHouse) May 7, 2026
American forces intercepted the threats and struck Iranian military sites responsible for the attacks, the statement said.
President Trump downplayed the exchange on Truth Social Thursday, calling it a “trifle.”
“Just like we knocked them out again today, we’ll knock them out a lot harder, and a lot more violently, in the future, if they don’t get their Deal signed, FAST!,” Trump wrote.
Trump also said the cease-fire remains in place despite the fighting.
Hormuz Escort Plans and Peace Talks
The Trump administration is weighing a restart of “Project Freedom,” an operation to escort commercial vessels through the Strait of Hormuz, the Wall Street Journal reported.
The Strait has been effectively closed to normal traffic, analysts at Saxo Bank said Friday. They described the week as “almost $20 trading range as Middle East headlines swung sentiment between optimism and frustration.”
Markets are still watching for a possible restart of direct peace talks between the U.S. and Iran.
ING analyst Francesco Pesole wrote in a research note that there is hope a deal could be reached before a U.S.-China summit scheduled for May 14-15, but said “risks are clearly very binary.”
Pesole said market optimism is “fading again” following the military clashes and the potential return of U.S. escort operations.
Saxo Bank analysts noted the key issue is unchanged: “The Strait of Hormuz remains effectively closed, with renewed clashes between U.S. and Iranian forces lowering the prospect of a near-term reopening.”
As of early European trading Friday, Brent crude for July delivery was up 0.6% to $100.67 a barrel. WTI futures for June were up 0.4% to $95.16 a barrel.
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