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WTI slips as hopes rise for Strait of Hormuz reopening
WTI is near $74 and could extend losses toward $70 if it breaks below key technical support, with a lower target around $67.1.
WTI crude futures on NYMEX were trading about 0.45% lower to near $74 in early European trading, coming off the prior session's three-week low around $73.51, according to FXStreet.
The selling pressure is tied to expectations that the Strait of Hormuz, which carries nearly 20% of global energy supply, will reopen soon. FXStreet points to comments from Iran’s foreign ministry spokesperson, Esmaeil Baghaei, that Iran and Oman are close to finalizing a framework to manage navigation through the passage, and a Gulf official estimating a 50% chance of an agreement by Friday.
FXStreet also notes that financial markets may focus on reactions from global leaders that have emphasized freedom of navigation. It adds that the news is contrary to US President Donald Trump’s post on Truth Social over the weekend that Iran agreed to “Immediate, Complete, and Total opening of the Hormuz Strait,” while the US has condemned Iran’s intentions for asserting authority near the strait.
On the technical side, FXStreet says WTI remains below its 20-day exponential moving average near $79.24, suggesting rallies could be corrective. It expects the decline to potentially extend toward $70, and warns that a decisive break below could expose a five-month low around $67.09.
Latest closeWTI crude $75.12 ▼0.9%