Oil jumps, stocks fall as U.S.-Iran clashes spark peace talks fears

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Stocks sank and oil prices jumped on Friday (May 8, 2026) as U.S.-Iran clashes in the Strait of Hormuz jolted hopes for a deal to end the war and reopen the crucial waterway. Markets across the world have enjoyed a strong run this week on growing optimism that the 10-week conflict — which has sent oil prices soaring — will be concluded soon. Iran-Israel war LIVE updates However, the risk-on mood was tempered on Thursday (May 7, 2026) following news that US forces had carried out strikes on Iranian military targets in response to an attack on three American destroyers…

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