U.S. strikes in Iran revive Strait of Hormuz turmoil fears
Aerial view shows a Valero refinery in Corpus Christi, Texas, on May 5, 2026.
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Oil prices rose on Thursday after new U.S. strikes on Iran revived concerns about disruptions to commercial shipping in the Strait of Hormuz.
Brent Crude futures, the international benchmark, rose 1.81% to $96 per barrel, while West Texas Intermediate futures rose 1.86% to $90.33 per barrel.
American forces have launched new attacks on a military site in Iran believed to threaten US troops and commercial ships in the Strait of Hormuz, a US official told MS NOW. They also reportedly captured and shot down several Iranian drones.
In a note published late Wednesday, Citi said oil markets were finding firmer ground as investors increasingly priced in worst-case supply disruption scenarios amid signs that Washington and Tehran were moving closer to a deal.
Still, the bank warned that uncertainty about the timing of any deal is keeping central banks on guard and policymakers are weighing tighter monetary regulation in response to energy-fueled inflation risks.
The prolonged rise in crude oil prices has begun to spill over into broader inflationary pressures, particularly through “second-round effects”, leading some central banks to take a more hawkish stance, the bank said.
