Oil resumes rally as U.S.-Iran fire exchange rattles fragile Hormuz ceasefire

In an aerial view, a Valero refinery is seen on May 5, 2026 in Corpus Christi, Texas. Brandon Bell | Oil resumed its rally Friday after the U.S. and Iran exchanged fire in the Strait of Hormuz, fanning fears that the fragile ceasefire between the two countries was unraveling and threatening continued disruption to shipping via one of the world's most critical oil route. International benchmark Brent crude futures for July delivery rose 2.26% to $102.32 per barrel. U.S. West Texas Intermediate futures for June delivery added 2.06% $96.76. Washington and Tehran accused each other of initiating attacks in the Strait of Hormuz, further straining a ceasefire agreement already weakened by repeated allegations of violations. The flare-up came as Iran is reportedly reviewing a U.S. proposal to end the war. U.S. President Donald Trump , in a call with an ABC News reporter later Thursday, insisted that the ceasefire remains in effect, saying the strikes were "just a love tap." Stock Chart Icon Stock chart icon Oil prices since the start of the year In a Truth Social post, Trump said U.S. forces had wiped out the Iranian targets involved in the clash, including small boats and drones. He also warned that Iran would face further military strikes if it failed to agree to a nuclear deal. …