Crude Oil Price On May 8: Brent Crude Climbs Back After Sharp Two-Day Fall

Global crude oil prices remained elevated on Friday, with Brent crude continuing to trade above the psychologically significant $100-a-barrel mark despite a sharp correction earlier this week triggered by hopes of easing tensions between the United States and Iran.

Brent crude futures were trading at $101.55 on Friday, recovering steadily after briefly slipping below $100 and touching nearly $97 a barrel from Wednesday's high of around $108. The rebound comes as geopolitical tensions in the Middle East once again rattled global energy markets, prompting traders to reassess the risks of prolonged supply disruptions.

US benchmark West Texas Intermediate (WTI) crude also climbed sharply, rising 1.95 per cent to $96.66 a barrel. Gasoline futures gained 1.28 per cent, while heating oil jumped 2.53 per cent, reflecting renewed nervousness across energy markets.

The latest recovery in prices follows renewed uncertainty surrounding the conflict involving the US, Israel and Iran. Investors had initially welcomed reports suggesting Washington and Tehran could move towards a ceasefire framework, raising hopes that disruptions in the strategically vital Strait of Hormuz might ease.

According to reports, optimism surged earlier this week after Axios claimed that the US believed a draft one-page framework could eventually lead to negotiations over Iran's nuclear programme and potentially de-escalate the conflict. The prospect of diplomacy briefly calmed fears of supply shortages and pushed oil prices sharply lower.

However, those gains proved short-lived.

Source: oilprice.com

As tensions escalated once again, traders returned to safer positions, driving crude prices back above $100. Market analysts said the oil market remains extremely sensitive to developments in the Middle East, especially around the Strait of Hormuz - one of the world's most critical maritime energy routes.

Nearly one-fifth of global oil and gas shipments normally pass through the narrow waterway connecting the Persian Gulf to international markets. Iran has repeatedly threatened to target oil tankers passing through the strait in retaliation for US-Israeli military actions since late February, raising fears of a prolonged disruption to global supplies.

The Strait of Hormuz has remained effectively constrained for weeks, severely impacting the movement of crude and liquefied natural gas shipments. This has added further pressure on already volatile global energy markets.

Although prices have retreated from the recent peaks seen immediately after the conflict intensified, they remain significantly higher than levels recorded before the crisis erupted. Prior to the escalation, Brent crude had been hovering near the $70-a-barrel mark.

Several global crude benchmarks continued to show volatility on Friday. The Indian basket stood at $112.47 a barrel despite a decline of over five per cent, while the OPEC basket traded at $112.26. Dubai crude remained near $97.60, and the Japan-Korea LNG marker held above $16.

Analysts warned that any further military escalation or direct disruption to shipping activity in the Strait of Hormuz could trigger another sharp rally in crude prices, potentially impacting inflation, transport costs and fuel prices worldwide.