Oil futures edge up as traders await Iran response to US peace proposal
Updated
Updated · MarketWatch · May 8
Oil futures edge up as traders await Iran response to US peace proposal
25 articles · Updated · MarketWatch · May 8
US crude settled at $95.42 a barrel in New York on 8 May, after rebounding from steeper losses and despite energy shares slipping.
Prices still fell 6.4% for the week, as markets weighed the chances of a Middle East peace deal and hedged against renewed conflict.
Earlier reports showed oil had spiked on US-Iran strikes, Gulf clashes and Iranian missile attacks on the UAE, while Venezuela's PDVSA hired White & Case over the pending Citgo sale.
With 1,600 ships stranded, is a global food crisis the real price of the US-Iran war?
Can a 14-point peace plan resolve the deep dispute over Hormuz and Iran's nuclear program?
Can billion-dollar defense systems survive the new era of cheap, precise drone swarms?
May 2026 Strait of Hormuz Crisis: Iran Attacks, U.S. Military Response, and Soaring Oil Prices
Overview
In early May 2026, Iran escalated tensions by warning it would attack U.S. forces entering the Strait of Hormuz, shortly after the U.S. announced plans to escort commercial ships. Iran fired on a South Korean cargo ship, prompting U.S. military strikes and triggering over 2,800 Iranian drone and missile attacks on the UAE, damaging critical oil infrastructure. This conflict caused a blockade that stranded around 2,000 ships and led to soaring global oil prices. Efforts like the U.S. Project Freedom to secure shipping lanes failed due to regional opposition, Iranian retaliation, and commercial avoidance. The crisis rapidly depleted global oil reserves, disrupted LNG supplies, and forced costly rerouting, exposing the fragile global energy system and raising risks of prolonged economic instability.