U.S. crude oil futures surged approximately 2.5% on May 8. West Texas Intermediate (WTI) settled at $97.18 per barrel. The price increase represented a $2.37 climb from the previous session.
This rally reversed steep losses triggered by previous optimism over a U.S.-Iran peace memorandum. Reports of explosions near the Iranian port of Bandar Abbas emerged late on May 7. These hostilities reintroduced a significant risk premium to global energy markets.
The developments cast doubt on the reopening of the Strait of Hormuz. This waterway carries 20% of the world’s oil and LNG supply. Renewed uncertainty suggests continued high volatility for energy stocks and ETFs like VDE.