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WTI holds gains near $79 as Iran talks uncertainty persists
WTI was up 0.75% around $79.40, with traders weighing Middle East tension and supply risks despite an OPEC+ plan to raise output from September.
WTI edged higher in the Asian session on Tuesday, recovering after a slump into the mid-$77.00s, and was last around the $79.40 area, up 0.75% for the day, according to FXStreet.
Support for crude came from uncertainty around Iran, including Iran saying on Monday there were no talks underway with the US and no plan for meetings, which contradicted statements by U.S. President Donald Trump about resuming negotiations.
Further developments cited by FXStreet included unconfirmed reports of drone strikes on US assets in Kuwait, Iran warning that it would not permit shipping routes through the strategic waterway other than its designated one, and additional concern from an Iran-backed Houthi naval blockade affecting Saudi Arabia, all of which increased the perceived geopolitical risk premium for crude.
FXStreet also noted that the current focus on the conflict-related risk is largely overshadowing the OPEC+ decision on Sunday to raise production from September, while Rabobank’s Benjamin Picton warned the market could repeat a pattern where strikes resume, oil prices rally, equities sell, and bond yields rise later in the week.
Latest closeWTI crude $80.00 ▼5.5%