Crude oil prices saw sharp volatility between May 3 and May 7, 2026, as markets reacted to rising U.S.-Iran tensions, disruptions in the Strait of Hormuz, and shifting diplomatic signals.
June West Texas Intermediate (WTI) crude futures moved sharply between $107.46 and $88.66 before settling around $97 per barrel by the end of the week. The wide price swings reflected growing uncertainty over global oil supply.
A major factor behind the surge was the ongoing disruption in the Strait of Hormuz, a critical shipping route for global oil trade, through which about 20% of the world’s seaborne crude passes.
The closure of the waterway sparked fears of a major supply shortage.
Tensions escalated early in the week after Iran launched missiles and drones targeting areas near the United Arab Emirates’ key oil export hub in Fujairah.
In response, U.S. naval operations increased in an effort to secure the waterway and restore shipping activity.
The developments triggered strong buying in the oil market as traders feared that prolonged instability could remove millions of barrels of crude from global supply.
Energy analysts warned that the situation highlighted how vulnerable global oil markets remain to geopolitical shocks and supply disruptions.
