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WTI slips near $84 as US Iran strikes pause and Red Sea traffic falls
WTI was still down nearly 6% for the day near $84.0 after the US paused 13 straight nights of strikes, while Red Sea transit disruptions also kept supply-risk concerns in focus.
WTI, the benchmark US crude, opened the week lower with a bearish gap and moved away from its late-week peak near $92.25, falling to around the $84.0 area. The move comes after WTI declined for multiple sessions, with the market still down nearly 6% for the day, according to FXStreet’s market update.
FXStreet said the backdrop includes a US pause in its bombing campaign after 13 consecutive nights of strikes on Iranian targets late on Friday. The update adds that Tehran suspended retaliatory attacks against Washington’s allies in the Middle East, lifting hopes for negotiations to end a five month US-Iran conflict and prompting some unwinding of the geopolitical risk premium that had supported crude.
At the same time, the outlet pointed to oil logistics concerns, noting traffic through Bab el-Mandeb fell on July 26 after Iran-backed Houthis attacked Saudi oil installations along the Red Sea coast. FXStreet said that raises worries about further disruptions to global oil supply by restricting transit routes tied to the Strait of Hormuz.
FXStreet also cited Rabobank’s RaboResearch Global Economics & Markets, highlighting supply worries that have supported rallies in Brent, WTI, and refined products amid Hormuz disruptions, intensified Russia-Ukraine strikes, CPC terminal outages, and record-tight diesel markets. The update said investors may hold off on confirming whether crude has topped out and waiting for more Middle East developments before positioning for deeper losses.
Latest closeWTI crude $90.47 ▼1.9%|Brent $98.38 ▼2.3%