Oil Prices Rise Amid Uncertainty Over U.S.-Iran Relations
Oil Price Today (May 12): Crude oil at $105 as Donald Trump says peace talks on ‘life support’. What are experts saying?
The Economic TimesImage: The Economic Times
Oil prices increased on May 12, with Brent crude at $104.51 and U.S. West Texas Intermediate at $98.38 per barrel. Concerns over the ongoing U.S.-Iran conflict and potential disruptions in the Strait of Hormuz are driving market volatility, with analysts warning that prices could surge if negotiations fail.
- 01Brent crude rose to $104.51 per barrel, while WTI reached $98.38.
- 02The U.S. plans to release 53.3 million barrels from the Strategic Petroleum Reserve to stabilize markets.
- 03Analysts predict prices could hit between $110 and $150 per barrel if the Strait of Hormuz remains closed.
- 04Military tensions in the region, including UAE strikes in Iran, contribute to market volatility.
- 05Morgan Stanley warns of a potential supply shock if negotiations between the U.S. and Iran stall.
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On May 12, oil prices continued to rise, with Brent crude futures climbing to $104.51 per barrel and U.S. West Texas Intermediate reaching $98.38. This increase is attributed to ongoing uncertainties regarding the U.S.-Iran conflict, as President Donald Trump indicated that the ceasefire is 'on life support.' The Trump administration announced plans to release 53.3 million barrels of crude from the U.S. Strategic Petroleum Reserve to mitigate market concerns. Analysts from Morgan Stanley noted that the global oil market is in 'a race against time,' as prolonged tensions could lead to significant supply disruptions, especially if the Strait of Hormuz remains closed. They warned that if negotiations between Washington and Tehran falter, prices could surge to between $110 and $150 per barrel, affecting nearly 20 million barrels per day of global crude flows. The market's current state reflects a delicate balance, with rising U.S. crude exports and softer Chinese imports helping to avoid a deeper supply shock for now.
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The rise in oil prices could lead to increased fuel costs for consumers and businesses, affecting transportation and production expenses.
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