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WTI holds near two-week highs amid Hormuz uncertainty
WTI was trading around $84.25 to $84.30, with geopolitical risk around the Strait of Hormuz and Red Sea disruption keeping the oil market sensitive to headlines.
West Texas Intermediate crude extended its consolidative move in early European trade and was quoted near $84.25 to $84.30, close to a two-week high set earlier in the session, according to FXStreet.
FXStreet attributed the bullish tilt to uncertainty linked to the US-Iran standoff over the Strait of Hormuz, which keeps a geopolitical risk premium in the market. It also cited President Trump saying the US has total control over the strategic waterway, alongside Iran’s counter claim that Hormuz is under its control and its demand that Washington agree to Tehran’s conditions for shipping to resume.
The report also pointed to disruption risks beyond Hormuz, noting Rabobank’s Energy Markets team said Brent has swung between roughly $72 and $102 per barrel since the end of a late-June memorandum of understanding, tracking rumors of either de escalation or renewed escalation.
In addition, FXStreet said attacks near the Bab al-Mandeb Strait involving Iran-backed Houthi rebels raise the risk of a broader regional conflict, adding to supply concerns and supporting the view that any pullback may be met with buying interest.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%