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WTI rises above $82 as US-Iran deadlock keeps Strait risk premium
WTI was up 0.7% to about $82.10, while traders looked ahead to the API weekly crude inventory report due Tuesday amid renewed Middle East tensions.
West Texas Intermediate crude moved higher on Monday, trading around $82.10 and up 0.7% on the day, as a US-Iran deadlock continued to keep market concern elevated about oil flows through the Strait of Hormuz, FXStreet reported.
FXStreet said prospects for a full reopening of the strait remain uncertain after Iranian Foreign Minister Abbas Araghchi said no negotiations were taking place and that the United States would need to accept Iran’s conditions for shipping to resume. The outlet also noted that tensions intensified over the weekend, after Iranian officials urged the US to acknowledge defeat and after US President Donald Trump suggested the strait could be treated as US territory.
The market is also tracking renewed escalation in the Israel-Hezbollah conflict in Lebanon, with FXStreet saying that further deterioration could heighten worries about the stability of energy supplies in the Middle East and keep a geopolitical risk premium in WTI prices.
On top of Middle East risks, FXStreet highlighted supply uncertainty from Russia, citing reported fuel shortages after Ukraine resumed near-daily attacks on Russian oil refineries. Traders are turning to the American Petroleum Institute weekly crude oil inventory report due Tuesday, and Rabobank warned that additional US sanctions on Iran could have costs at home as well as implications for third parties financing Iranian trade.
Latest closeWTI crude $82.40 ▲1.4%