Global Oil Prices Rise as Iran-US Conflict Pressures Supply

Global oil prices rose during trading on Friday (15/5/2026), propelled by uncertainties over resolving the Iran-US conflict that still looms over the global energy market. Citing Bloomberg, Brent crude prices neared $107 per barrel. On a weekly basis, Brent futures contracts were up around 5%. Meanwhile, West Texas Intermediate (WTI) crude oil traded in the range of $102 per barrel. The rise in oil prices occurred amid disruptions to energy distribution flows through the Strait of Hormuz, a vital shipping route for world oil trade. The situation heated up after a commercial vessel was reportedly seized by unidentified parties at the entrance to the Strait of Hormuz and taken into Iranian waters. US President Donald Trump also met with Chinese President Xi Jinping on Thursday (14/5/2026). According to White House officials, the two leaders discussed efforts to keep the Strait of Hormuz open to support global energy trade, including increased US oil flows to China. Trump reaffirmed his hardline stance against Iran via a post on Truth Social on Friday morning, stating that “Iran’s military weakening will continue,” while expressing hope for improved US-China relations. The protracted conflict is beginning to impact global oil reserves. The International Energy Agency (IEA) previously stated that the world oil market will continue to face serious supply shortages until October 2026, even if the conflict ends next month. Senior Vice President of Trading at BOK Financial Securities Inc, Dennis Kissler, said oil prices still have potential to rise in the short term. “I think the near-term price direction remains bullish because crude oil and fuel inventories continue to shrink,” Kissler said. According to him, the chances of conflict escalation remain significant due to the wide gap in positions between Washington and Tehran. Although a ceasefire has been in place since early April, tensions between the US and Iran have flared up several times. Trump had previously described the peace agreement as being on “massive life support,” or highly fragile. Energy trading firm Vitol Group has even begun offering Iraqi crude oil to buyers, indicating that some cargoes have successfully exited the Gulf region. Based on data from the Energy Information Administration (EIA), shipments of crude oil and fuels through the Strait of Hormuz fell by nearly 6 million barrels per day in the first quarter after the conflict erupted.