By Adam Clark

Oil prices were edging up early Friday as an exchange of fire between the U.S. and Iran tested a cease-fire.

Brent crude futures, the international standard, were up 0.5% at $100.51 a barrel. West Texas Intermediate futures were rising 0.4% to $95.19 a barrel.

However, prices are still down since the start of the week when Brent traded around $108 a barrel and WTI stood at close to $100 a barrel.

The U.S. military said Thursday that Iran launched attacks at U.S. warships transiting the Strait of Hormuz and American forces intercepted the threats. However, President Donald Trump called the exchange of fire a "trifle" and reiterated that the cease-fire is still in place.

"Just like we knocked them out again today, 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!," Trump posted on Truth Social on Thursday.

The Trump administration is considering restarting its "Project Freedom" operation to escort vessels through the crucial Strait of Hormuz, where 20% of the world's oil normally transits, The Wall Street Journal reported. However, the market still appears hopeful that direct peace negotiations between the U.S. and Iran will resume shortly, as both sides work with mediators.

"Market optimism is fading again, after some military skirmishes in the Strait of Hormuz and the U.S. restarting its escorting programme. There is still some hope that a deal will be agreed before the 14-15 May US-China summit, but risks are clearly very binary," wrote ING analyst Francesco Pesole in a research note.

Write to Adam Clark at adam.clark@barrons.com

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May 08, 2026 08:24 ET (12:24 GMT)

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