Oil Prices Jump After Naval Clashes Between US and Iranian Forces in Strait of Hormuz

Oil prices surged after clashes between United States and Iranian forces in the Strait of Hormuz on Thursday tested a tenuous ceasefire. 70 per barrel. 5 million barrels.

US oil prices surged by as much as 3 percent early on Friday. 26 per barrel as of 22:33 GMT. The fighting followed IRGC naval forces drills in the Strait of Hormuz in February 2026.

President Donald Trump said three US destroyers successfully transited the Strait of Hormuz while under fire from Iran and without sustaining damage. He claimed US forces destroyed the Iranian attackers which included fast boats, missiles and drones.

President Donald Trump accused Iran’s leadership of being lunatics and said the US destroyers would rejoin a US naval blockade of Iran’s ports described as a Wall of Steel.

He added that he wants a peace deal with Iran fast. US Central Command stated that clashes with Iranian forces were a self-defence measure. Iran accused the US of violating the ceasefire and launching attacks against the country.

Iranian forces said they had responded to an act of aggression by US forces against vessels in the Strait of Hormuz and responded with missile fire. The IRGC naval forces said that three US destroyers were targeted in response to recent strikes. US attacks targeted two Iranian ships, one oil tanker and another vessel, according to Iranian officials.

Blasts occurred in Tehran after a period of relative calm. The state news agency IRNA reported two blasts taking place in Tehran and air defences were activated over Tehran. Several explosions were reported in Bandar Abbas.

The governor of Minab confirmed attacks on a maritime base. Joint military headquarters confirmed attacks on Bandar Khamir and Sirik. The situation on Iranian islands and in coastal cities along the Strait of Hormuz has now returned to normal, Iran’s Press TV reported.

The UAE’s Ministry of Defence said air defence systems are actively engaging with missiles and UAV threats. The UAE’s Ministry of Defence said the sounds heard across the country are the result of ongoing engaging operations of missiles and UAVs while the National Emergency Crisis and Disaster Management Authority of the UAE said air defence systems are currently responding to a missile threat.

Russia and China are expected to veto a Gulf-backed UN resolution on the Strait of Hormuz.

The draft UN resolution on freedom of navigation in the Strait of Hormuz is co-sponsored by the Gulf cooperation countries. China and Russia have told council members they plan to veto the draft resolution because it hints at sanctions against Iran and does not single out the United States and Israel for starting the war, according to diplomatic sources.

Donald Jensen characterised the recent naval clash between the United States and Iran in the Strait of Hormuz on Thursday as “controlled escalation”.

Donald Jensen said both nations are trying to show their resolve while attempting to settle on a framework on some key issues. Donald Jensen said a resolution is likely but will be much more limited to focus on the passage through the strait primarily. Port congestion is a main concern in Southeast Asia resulting from delays linked to instability around the Strait of Hormuz.

ASEAN as a region has been hit particularly hard by the Middle East crisis. Every single member state in ASEAN has been affected by the global oil crisis, Jamela Alindogan reported. Countries in East Asia like South Korea and Japan are relatively well insulated because they have relatively large stockpiles of oil, Patrick Fok said.

Singapore decided not to negotiate with Iran on passage through the Strait of Hormuz. The Philippines has been particularly exposed because 98 percent of the Philippines’ fuel supplies come from the Middle East. Philippine President Ferdinand Marcos Jr said ASEAN is standing together to demonstrate its capacity to respond with unity and resolve amid uncertainty and volatility in the Middle East.

The 48th ASEAN Summit and Related Meetings occurred in Cebu City, Philippines on May 7, 2026. South Korean activist Kim Ah-hyun had her passport suspended after joining the Global Sumud Flotilla mission to Gaza. Kim Ah-hyun was detained by Israel for two days in 2025 when Israeli forces intercepted the flotilla.

The South Korean government warned Kim Ah-hyun that she could face criminal penalties under its Passport Act. Lawyers for a Democratic Society filed a lawsuit seeking to overturn the suspension of Kim Ah-hyun’s passport.

82 percent. 05 on Thursday.