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WTI holds lower as Strait of Hormuz reopening odds rise
WTI is about 7.6% down near $78.60, with $77.16 flagged as key support after the market priced in suspended Iran attack plans.
WTI crude futures on NYMEX were holding onto early losses in Monday trading, down about 7.6% to around $78.60 in the Asian session, as the oil market weighed renewed optimism on the Middle East energy corridor.
FXStreet said US President Donald Trump announced planned attacks on Iran have been suspended, citing an alleged agreement for Iran to surrender its nuclear ambitions and for the Strait of Hormuz to reopen, a chokepoint tied to nearly 20% of global energy supply.
The outlet added that better odds of resumed peace talks are helping ease fears of a prolonged disruption, though markets remain concerned about whether any ceasefire and reopening commitments will actually hold.
On the technical side, FXStreet noted WTI is below the 20-hour exponential moving average near $81.18, with the July 28 low at $77.16 identified as key support, and a break lower potentially exposing the July 13 low at $72.53.
Latest closeWTI crude $86.80 ▲3.8%