Oil Climbs as Iran Talks Keep Supply Risks Alive

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Another sharp move in oil markets on May 12, 2026, as fragile Iran talks revived fears over global crude supplies. Trader closely monitored tensions around the Strait of Hormuz after oil benchmarks rallied strongly a day earlier.

Oil Prices Rise as Supply Concerns Shake Markets

Oil prices climbed on Tuesday, with Brent crude rising 0.8% to $105.07 per barrel while U.S. West Texas Intermediate gained 1% to $99.06. The advance came as negotiations linked to the U.S.-Iran conflict appeared increasingly uncertain, keeping supply risks firmly in focus.

Iran renewed its emphasis on sovereignty over the Strait of Hormuz, the critical route that handles nearly one-fifth of global oil and LNG flows. “When the market senses disruption, crude rarely stays quiet,” the energy desk noted during Asian trading.

Hormuz Tensions Add Fresh Pressure to Oil Market

Supply worries deepened after OPEC output reportedly fell to its lowest level in over two decades. Analysts also forecast a 1.7 million-barrel drop in U.S. crude inventories last week, reinforcing bullish momentum across oil markets.