Daily Market Wrap — 2026-05-08

Oil markets experienced extreme volatility today, May 8, 2026, as the Strait of Hormuz remained closed amidst escalating US-Iran hostilities and failed diplomatic efforts. Brent crude surged initially by 5.57% to $100.50/barrel and WTI by 5.31% to $101.70/barrel following reports of US self-defense strikes on Iran and naval fire in the Strait, leading to its closure. However, prices whipsawed, with Brent ultimately closing down 3.37% at $100.98/barrel and WTI showing a conflicting -3.61% at $91.65/barrel on some quotes, reflecting market uncertainty amid emerging, then dashed, peace deal hopes. The Disruption Index held steady at 99.

Iran’s establishment of a new authority to control Strait traffic and subsequent rejection of a US proposal to reopen the vital chokepoint underscored sustained geopolitical risk. US Energy Secretary confirmed Iran’s oil production cut of 400,000 bpd. Explosions reported on Qeshm Island further intensified regional tensions. Tomorrow, market focus will intently track any developments regarding the Strait of Hormuz, US-Iran diplomatic efforts, and potential military actions.

Price snapshot

Top movers

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Related news

• US Launches Self-Defense Strikes on Iran, Strait of Hormuz Closed Amid Naval Fire — The U.S. military conducted self-defense strikes on two Iranian ports, Bandar Abbas and Qeshm, after three U.S. Navy destroyers came under attack from Iranian drones, missiles, and small boats in the Strait of Hormuz. Shipping intelligence firm Lloyd's List reported that the Strait of Hormuz is now closed, with no transits recorded since May 4, as Iran established a new authority to approve ship transits and collect tolls. Brent crude oil prices hovered around $100 a barrel amidst these developments.
• Oil Prices Whipsaw as US-Iran Peace Deal Hopes Emerge Amid Hormuz Tensions — Crude oil prices experienced significant volatility, with WTI futures briefly dipping below $90 a barrel before paring losses, as reports suggested progress in US-Iran peace talks and the potential reopening of the Strait of Hormuz. WTI crude was trading around $90.66, extending losses for the third consecutive day on hopes of de-escalation. However, prices later swung higher to $97.11 USD/Bbl on May 7, reflecting continued uncertainty.
• Saudi Arabia and Kuwait Lift Restrictions on US Military for Hormuz Reopening Efforts — Saudi Arabia and Kuwait have lifted restrictions on the U.S. military's use of their bases and airspace. This development paves the way for the potential resumption of 'Project Freedom,' a U.S. operation aimed at escorting ships through the Strait of Hormuz. The move comes as the U.S. seeks to reopen the critical waterway amidst ongoing Iranian attacks and control measures.
• Iran Establishes New Authority to Control Strait of Hormuz Traffic, Strait Remains Closed — Iran has created a new 'Persian Gulf Strait Authority' to approve ship transits and collect tolls in the Strait of Hormuz, according to shipping intelligence firm Lloyd's List. The firm reported that the strait is currently closed, with no transits recorded since May 4. This move by Iran is an attempt to formalize its control over the vital shipping lane amidst ongoing geopolitical tensions.
• Iran Reportedly Rejects US Proposal to Reopen Strait of Hormuz, Oil Prices Fluctuate — Reports indicate that Iran has rejected a US proposal to reopen the Strait of Hormuz, which it deemed "unrealistic." This development caused US oil prices to initially erase losses and turn green after earlier dips on hopes of a peace deal. The ongoing negotiations between the US and Iran are crucial for the global oil supply, as the Strait remains a critical chokepoint.
• Iranian State Media Reports Explosions on Qeshm Island Amidst Exchange of Fire — Iranian state TV reported explosions on Qeshm Island in the Strait of Hormuz on Thursday, May 7, stating they occurred during an "exchange of fire" between Iranian armed forces and enemy units. Air defenses were activated in western Tehran and other explosions were heard in Bandar Abbas and Minab, north of the Strait. These incidents highlight the ongoing tensions and military activity in the critical waterway.
• US Energy Secretary States Iran Cut Oil Production by 400,000 bpd — U.S. Energy Secretary Chris Wright announced on Thursday, May 7, that Iran appears to have cut back its oil production by 400,000 barrels per day. He suggested that Iran is likely to reduce production further as its storage units fill up. This reduction in Iranian output contributes to the global supply concerns amidst the ongoing regional conflict.
• US OFAC Designates Gulf Energy Oil Services Limited for Iran-Related Activities — The U.S. Office of Foreign Assets Control (OFAC) has designated Gulf Energy Oil Services Limited, an Iraq-based company, for its involvement in activities related to Iran. This action falls under counter-terrorism and Iran-related sanctions, signaling continued U.S. pressure on entities supporting Iran's energy sector. The designation aims to further restrict financial and material support to designated Iranian networks.
• US targets Iraq oil official and militias with sanctions for aiding Iran — The U.S. Treasury Department has imposed sanctions on Iraq's deputy oil minister, Ali Maarij Al-Bahadly, and Iran-aligned militias. They are accused of facilitating the diversion of Iraqi oil to benefit the Iranian regime and its proxy militias. These sanctions come as the U.S. and Iran are reportedly nearing a temporary agreement to halt the war.
• US Energy Secretary Estimates Iran Cuts Oil Production by 400,000 BPD Amid Sanctions Pressure — US Energy Secretary Chris Wright estimates that Iran's oil production has decreased by nearly 400,000 barrels per day due to sanctions pressure and military uncertainty. Energy analysts warn that any disruption in the Strait of Hormuz could jeopardize almost 20% of global oil shipments, making the situation critical for world markets. Despite fresh diplomatic signals for peace, the Middle East remains dangerously unstable.
• US Military Strikes Iranian Oil Tanker in Gulf of Oman Amid Peace Deal Pressure — The U.S. military fired on an Iranian oil tanker in the Gulf of Oman on Wednesday, May 7, 2026, targeting its rudder as it attempted to breach an American blockade of Iran's ports. This action comes as President Donald Trump seeks to pressure Tehran into a deal to end the war. Iran is reportedly reviewing the latest American proposals for a peace agreement.
• Trump says Iran war will 'be over quickly' as Tehran seeks to lay claim to Strait of Hormuz — Iran is reviewing a U.S. peace proposal and has created a new 'Persian Gulf Strait Authority' to control and toll shipping through the Strait of Hormuz. Lloyd's List reports the strait is currently closed, trapping around 1,500 ships in the Persian Gulf. Brent crude is hovering around $100 a barrel, a significant drop from $126 last week.

Frequently asked questions

What moved oil prices today?

Brent Crude Oil led with a +5.57% move.

What is the current Strait of Hormuz status?

Iran rejects US deal as Strait of Hormuz remains closed amid US-Iran strikes.

What is the Disruption Index?

Currently 99, up 0 vs prior reading.