Iran-US Conflict Heats Up, Global Oil Prices Break Through 114 US Dollars
NEW YORK - Global oil prices jumped around 6% at the close of trading on Monday (4 May 2026) local time, or Tuesday (5 May 2026) morning Western Indonesia Time.
The price increase was triggered by rising tensions in the Middle East after Iran expanded attacks on ships in the Gulf and set fire to a UAE oil port, sparking concerns over disruptions to global energy supplies.
Citing Reuters, Brent crude oil prices rose 6.27 US dollars or 5.8% to 114.44 US dollars per barrel. Meanwhile, US West Texas Intermediate (WTI) crude oil prices increased by 4.48 US dollars or 4.4% to 106.42 US dollars per barrel.
Iran reportedly attacked several ships in the Strait of Hormuz and triggered a fire at one of the UAE’s major oil ports. This escalation is the largest since the ceasefire between the US and Iran was implemented in early April.
The US military stated that it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones fired towards the Strait of Hormuz area.
On the other hand, Iran’s Revolutionary Guard issued a map purportedly expanding Iran’s control area around the Strait of Hormuz to include the UAE’s Fujairah and Khorfakkan ports.
Around 20% of the world’s oil and liquefied natural gas (LNG) supplies previously passed through the Strait of Hormuz before the US and Israel conflict against Iran broke out on 28 February 2026.
“Oil prices will remain above 100 US dollars, and US petrol prices could reach 5 US dollars per gallon in June if there is no agreement to reopen the Strait of Hormuz,” wrote Eurasia Group analysts in their note.
Iran is likely to have attacked four ships in the Gulf region over the past 24 hours, including vessels from South Korea and the UAE.
South Korea’s Foreign Ministry reported a fire and explosion on a ship operated by HMM shipping company.
The UAE also accused Iran of attacking an empty ADNOC state oil company tanker using a drone while crossing the Strait of Hormuz.
Amid these geopolitical tensions, the UAE, which left OPEC last week, affirmed it would continue to increase oil production according to global market needs.
OPEC and its allies in OPEC+ also stated they would raise the oil production target by 188,000 barrels per day in June for seven member countries, marking the third consecutive monthly increase.