Brent crude and WTI futures slide on renewed US-Iran tensions
Updated
Updated · CNBC · May 5
Brent crude and WTI futures slide on renewed US-Iran tensions
10 articles · Updated · CNBC · May 5
Brent for July fell 0.60% to $113.77 a barrel and WTI dropped 1.35% to $105.06, after Monday gains of 6% and 4% respectively.
Markets weighed risks after Iranian drones and missiles hit the UAE and Washington said it sank Iranian vessels in the Strait of Hormuz, where Trump also reported a South Korean cargo ship came under fire.
Goldman Sachs and Chevron warned the strait's closure is tightening fuel supplies despite still-adequate global stocks, with localized shortages feared in South Africa, India, Thailand and Taiwan.
Beyond oil, vital supplies of fertilizer and helium are cut off. How will this commodity crunch reshape our daily lives?
With the world's most critical waterway shut, is a global recession and food crisis now inevitable?
A historic supply shock is underway, so why does the market seem to be betting on a swift resolution?
May 2026 Strait of Hormuz Crisis: Oil Prices Soar Amid Military Escalation and Diplomatic Deadlock
Overview
On March 2, 2026, Iran blockaded the Strait of Hormuz, disrupting about 20 million barrels per day of oil shipments and triggering a sharp 4.5% surge in Brent crude prices. This escalation led to US naval blockades and military strikes, intensifying regional conflict and proxy attacks, while global markets faced turmoil with soaring shipping costs and inflation fears. On May 4, a direct confrontation occurred when Iran blocked a US warship, causing oil prices to jump over 5%, stock markets to fall, and currencies like the yen and euro to weaken sharply. The blockade reignited global inflation, pressured central banks, and heightened recession risks, all amid stalled US-Iran negotiations over nuclear and security demands.