US oil extends gains to intraday high above $102/bbl

US oil prices extended gains to an intraday high above $102 per barrel on May 12, 2026, as geopolitical tensions in the Strait of Hormuz continued to disrupt global oil flows. WTI crude oil futures rose nearly 4% on the day, building on a 2.8% increase from the previous session, driven by fears that the key shipping route could remain effectively closed for an extended period.

President Donald Trump stated that the US-Iran ceasefire was on "massive life support" after rejecting Tehran's latest peace proposal, heightening concerns over the stability of oil exports from the region.

Iran has demanded the removal of the US naval blockade and sanctions relief while seeking to maintain influence over traffic through the strait.

Reports indicated that Trump was preparing to meet with his national security team to assess potential military action and plans to escort commercial vessels through Hormuz.

Saudi Aramco CEO Amin Nasser warned that the market is losing approximately 100 million barrels of oil supply each week, with prolonged disruptions potentially delaying market normalization until next year.

Over the past month, crude oil prices have risen 2.21%, and are up 59.05% compared to the same period last year.

Analysts expect prices to trade at $97.70 per barrel by the end of the quarter and $112.23 in 12 months.

The ongoing conflict has also led to a surge in global coal demand and a shift in LNG flows, further complicating energy markets.