US-Iran Tensions Intensify Into May 12, Lifting Oil Premia on Persistent Hormuz Risks

Oil prices hold firm with Brent above $104/bbl and WTI near $98/bbl as US-Iran tensions escalate into May 12, amplifying supply fears from Strait of Hormuz disruptions impacting 20% of global flows. Initial May 5 clashes drove surges, briefly eased May 6 on peace reports (Brent -7%), but reignited May 8 amid 40+ trapped India-bound ships including 18 tankers, Iran seizing the Ocean Koi, and U.S. disabling two vessels. Diplomatic breakdowns peaked May 10-11 with Trump rejecting Iran's response as 'totally unacceptable,' triggering 3%+ rallies that pressure inflation, equities, and Asian currencies.