Oil Prices Surge as U.S.-Iran Clash Threatens Fragile Gulf Ceasefire

The U.S. and Iran exchanged fire in the Strait of Hormuz on Thursday as three U.S. Navy destroyers came under attack from Iranian missiles and drones , marking the most serious breach of their month-old ceasefire and sending oil markets into fresh turmoil. U.S. Central Command said its forces "intercepted unprovoked Iranian attacks and responded with self-defense strikes" as the USS Truxtun, USS Rafael Peralta, and USS Mason transited the strait .

Brent crude rose to $101.65 per barrel on May 8, up 1.59% from the previous day , according to market data from Trading Economics. WTI crude climbed to $95.72 per barrel, up 0.96% . The spike came after President Trump said there was no damage to the three destroyers, but "great damage done to the Iranian attackers" . Despite the flare-up, Trump reportedly called the strikes "just a love tap" and said the ceasefire remains in effect .

Shell Profits Jump on War-Driven Volatility

Shell reported adjusted earnings of $6.9 billion in the first quarter of 2026, up 24% from $5.6 billion a year earlier , according to Euronews. Dan Coatsworth, head of markets at AJ Bell, said "a key profit driver has been the Middle East conflict, leading to a spike in oil prices" .

The Financial Times reported that Shell warned of lower gas production after damage to its facilities in the Gulf. Shell faced operational setbacks, including damage to one of its facilities in Qatar during the conflict , and the company signaled that gas production in Qatar is expected to fall by at least 30% in the second quarter .

Before the war broke out, international oil prices were trading at roughly $70 a barrel, but the conflict-driven supply shock later pushed Brent crude to a peak of around $126 a barrel . Shell CEO Wael Sawan warned the Iran war has "dug a hole" of a billion barrels in global oil supply when combining oil that cannot be shipped through the Strait of Hormuz and reduced production .

Nvidia Bets Big on AI Infrastructure

In a separate development highlighting energy's intersection with technology, Nvidia and IREN Limited announced a strategic partnership to accelerate deployment of up to 5 gigawatts of NVIDIA DSX-aligned AI infrastructure across IREN's global data center pipeline . As part of the partnership, IREN issued to NVIDIA a five-year right to purchase up to 30 million shares of ordinary stock at an exercise price of $70 per share, resulting in a right to invest up to $2.1 billion .

CNBC reported that IREN also signed a separate five-year deal worth $3.4 billion to provide Nvidia with access to managed GPU cloud services for its internal AI and research workloads . The massive data centers required to power AI workloads are becoming major energy consumers, creating new demand dynamics in power markets.

Venezuela's Oil Comeback Continues

Venezuela's oil exports climbed sharply in April, reaching 1.23 million barrels per day, marking the highest monthly level since 2018, representing a 14% rise from March , according to OilPrice.com. Since the January capture of Nicolas Maduro and the installation of an interim government, Washington has eased sanctions and assumed control over Venezuelan oil sales, reopening access for trading houses and joint-venture partners .

The article noted that agreements signed this week with U.S. firms Hunt Overseas and Crossover Energy are targeting the Orinoco Belt, while European majors including Eni, Repsol, and BP are either expanding or evaluating their positions . The influx of Venezuelan barrels comes as global markets grapple with disruptions from the Strait of Hormuz, where no ships transited the strait Thursday, the second day in a row that the critical waterway has had no traffic at all , according to S&P Global Market Intelligence cited by NBC News.

What's Next for Energy Markets

The Trump administration is awaiting Iran's response to a proposal aimed at reopening Hormuz and ending the nearly 10-week conflict, with Tehran expected to deliver its response through Pakistan within the next two days , according to Trading Economics. The IEA warned that the war was disrupting roughly 14 million barrels per day of global oil supply and noted that any post-conflict production recovery would likely proceed gradually .

The combination of Middle East supply disruptions, Venezuela's gradual return to markets, and surging energy demand from AI infrastructure is reshaping global energy flows in ways that will likely persist long after any diplomatic breakthrough in the Gulf.