Commodities
Home›Commodities›Energy›WTI rises more than 3% on uncertainty over Strait of H…
WTI rises more than 3% on uncertainty over Strait of Hormuz reopening
WTI was around $78.8 a barrel as Iran tied a full reopening to demands including an end to the US naval blockade, while investors also weighed a reported drone attack on a Saudi Aramco refinery.
WTI US oil climbed 3.2% on Monday, trading near $78.8 a barrel, as markets stayed focused on uncertainty around the potential reopening of the Strait of Hormuz, a chokepoint for global energy flows. FXStreet said prices retained daily gains on persistent Middle East tensions and the risk of prolonged shipping disruptions if an agreement is not reached.
FXStreet noted that Iran has reiterated conditions for fully reopening the strait, including calls for an end to a US naval blockade and the withdrawal of US naval and air forces around Iran. The report also said Tehran is demanding compensation for damage from recent conflicts, the lifting of sanctions, and the unconditional release of frozen Iranian assets, factors that keep visibility limited.
The outlet also pointed to additional regional risk, citing a claimed drone attack on a Saudi Aramco refinery in Jazan by Yemen’s Iran-backed Houthis. FXStreet said the latest attack on energy infrastructure reinforced concerns about the security of oil supplies.
According to TD Securities, trend-following accounts have shifted back toward buying, with CTAs turning buyers of crude and heating oil as a Hormuz deal remains elusive. FXStreet added that while signs of an agreement could reduce the geopolitical risk premium in oil prices, a stalemate or further escalation could continue to support crude.
Latest closeWTI crude $78.07 ▲3.8%