Crude oil prices experienced one of the most volatile trading weeks of 2026 during the period of May 3 through May 7, as traders reacted to the ongoing U.S.-Iran conflict, disruptions in the Strait of Hormuz, and sudden changes in diplomatic negotiations. June West Texas Intermediate (WTI) crude futures swung violently between a high of $107.46 and a low of $88.66 before stabilizing near $97 a barrel by the end of the week. The sharp price swings reflected how sensitive the market remains to supply disruptions and geopolitical headlines.
Strait of Hormuz Crisis Fuels Market Panic
The biggest driver behind the rally early in the week was the continued closure of the Strait of Hormuz, one of the world’s most important oil shipping routes. Roughly 20% of global seaborne crude oil passes through the narrow waterway, and its disruption created fears of a severe global supply shortage.
Tensions escalated sharply on Monday after Iran launched missiles and drones targeting the United Arab Emirates near the key oil export hub at Fujairah. At the same time, U.S. naval forces intensified operations aimed at restoring commercial shipping through the strait. The combination of military escalation and fears of additional attacks triggered aggressive buying in crude oil futures.
Traders rushed into the market as concerns grew that the conflict could remove millions of barrels per day from global supply. Energy executives also warned that shortages were becoming more…
