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Brent rallies as Hormuz talks falter, pushing disruption risk higher
Brent and WTI each closed up about 5% on Monday for a fourth straight session, while Kpler-tracked Strait of Hormuz crossings reportedly fell from 15 on Friday to 6 on Sunday.
Brent oil and WTI accelerated higher on Monday, with both benchmarks closing up roughly 5% and extending a four-session rally to their highest levels in nearly two weeks, according to Action Forex.
The newsletter links the price strength to concerns that negotiations over the Strait of Hormuz are not resolving the core dispute, shifting market focus from whether headlines will hit to how long disruption could last.
Action Forex says the talks have repeatedly collided with underlying issues, citing Iran’s stated conditions, including compensation and sanctions relief, alongside the US position that calls for freedom of navigation through the strait without Iranian tolls, approvals, or controls.
It also points to physical indicators of disruption, saying Kpler-tracked crossings reportedly dropped from 15 on Friday to 11 on Saturday and 6 on Sunday, while other risks include Houthi activity affecting the Red Sea and Bab el-Mandeb route and spillover threats toward Saudi infrastructure.
Latest closeWTI crude $82.30 ▲5.3%|Brent $87.85 ▲5.2%