Crude oil climbs back above $101/bbl amid attacks in Strait of Hormuz; gold up 0.4%

Crude oil prices in the global market climbed back above $101 per barrel (bbl) levels on Friday, May 8, after fresh updates from the West Asia front suggested an exchange of attacks between the United States and Iran despite a ceasefire deal.

Latest media reports showed that Iran has not finalised its response to the US proposal as of yet, as investors eagerly await any signs of potential relief or a near-term end to the West Asia conflict, which is at the end of the 10th week since the beginning.

Global benchmark Brent crude oil prices dropped under the psychological mark of $100 per bbl during Thursday’s commodity market session on reports and optimism about easing the US-Iran blockade in the Strait of Hormuz.

The West Texas Intermediate (WTI) crude oil prices also dropped to $89.88 per bbl during the intraday trading session on Thursday, after opening around $95.67 per bbl earlier in the day.

Investors continued to remain cautious in the market as oil prices were subject to high volatility and the commodity was moving based on the dynamic cues from the conflict updates between the United States and Iran.

Oil prices today

At 8:01 am (IST), the Brent crude oil prices (July futures) were trading 1.42% higher at $101.49 per bbl on Thursday, compared to $100.06 per bbl at the previous commodity market close, according to Investing.com data.

Oil prices have risen more than 7% in the past one month period, and nearly 50% in the last three months on the global market.

The exchange data also showed that the US-based WTI crude oil futures were trading 1.07% higher at $95.80 per bbl as of 8:02 am (IST), on May 8, compared to $94.81 per bbl at the previous market close.

Factors fuelling oil prices today

Oil prices remained elevated during Thursday’s market, India time, as investors reacted to fresh attack reports in the Strait of Hormuz amid an absence of any positive cues from the negotiations between the United States and Iran.

A few hours ago, US President Donald Trump, in a Truth Social post, shared that three US Navy warships were transiting the Strait of Hormuz, and they exchanged fire with “Iranian attackers.”

Although the President’s post mentioned that there was no damage done to the US ships, the Iranian attackers witnessed “great damage” to their small boats.

“There was no damage done to the three Destroyers, but great damage done to the Iranian attackers. They were completely destroyed along with numerous small boats, which are being used to take the place of their fully decapitated Navy,” said Trump in his post.

Trump’s post also mentioned that the US warships were passing the Strait of Hormuz, and Iran allegedly did not allow them to transit due to the continuing closure. He also mentioned that the US blockade in the Strait of Hormuz will continue till Iran signs a peace deal with the United States.

“We’ll knock them out a lot harder, and a lot more violently, in the future, if they don’t get their Deal signed, FAST!” said Trump.

Gold prices today

At 10:30 pm (ET), the New York Mercantile Exchange-based COMEX gold prices were trading 0.40% higher at $4,728.70 per ounce on Thursday in United States, compared to $4,710 per ounce at the previous commodity market close, according to the official data.

Gold prices were trading higher due to safe-haven asset bets; however, the rates still remained under pressure on rising US dollar demand. Traders and investors tend to buy less of the precious metal if the price of US dollar rises a lot as they will be able to acquire lesser quantity at an elevated price.

Experts said that the US dollar rates were holding firm due to the escalating tensions in the Strait of Hormuz, which fuelled the demand for the safe-haven greenback.

Data collected from Bloomberg’s US dollar spot index (DYX) showed that the greenback was witnessing higher demand, trading 0.18% higher at 98.244 as of 10:32 pm (ET) on Thursday evening, compared to the previous currency market close.