May 4, 2026
Oil prices jump 4% as renewed Iran tensions threaten supply
Brent rises 1.9% to $110.22 after hitting $114.30, WTI up 0.5% to $102.41 with session high of $107.46
Iran earlier said it had prevented a U.S. warship from entering the Gulf.
Prices spiked after Iranian news agency Fars reported on Monday, citing local sources, that Tehran had struck a U.S. warship intending to pass through the strait and forced it to turn back. U.S. Central Command denied that any U.S. Navy ships had been struck on Monday.
"The path for prices remains skewed to the upside as long as flows through the strait remain restricted," UBS analyst Giovanni Staunovo said.
President Donald Trump said the U.S. would begin efforts to assist ships stranded in the strait, but prices stayed above $100 a barrel, with no peace deal in sight and shipping through the strategic waterway still constrained.
Iran's military warned U.S. forces on Monday not to enter the strait, saying it would "respond harshly" to any threat.
Trump has made securing a nuclear deal with Tehran a priority, but Iran wants to defer nuclear talks until after the war and first lift rival blockades on Gulf shipping.
Meanwhile, the United Arab Emirates on Monday accused Iran of attacking an empty crude oil tanker belonging to the Abu Dhabi state oil firm ADNOC [RIC:RIC:ADNOC.UL] with drones as it attempted to pass through the strait.
On Sunday, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, said it would raise oil output targets by 188,000 barrels per day in June for seven members, marking the third consecutive monthly increase.
The rise matches the one agreed for May, minus the share of the UAE, which left OPEC on May 1. However, the additional barrels are expected to remain largely confined to paper as long as the war continues to disrupt Gulf oil supplies.
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