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WTI stays near $84.50 as Strait of Hormuz supply risks linger
Shipping disruption in the Strait of Hormuz has slowed this month, with eight reported vessel attacks driving traders to avoid the route.
West Texas Intermediate crude prices held steady after three days of gains, trading around $84.50 per barrel during European hours Wednesday, as geopolitical tensions between the United States and Iran kept global supply concerns elevated, FXStreet reports.
The article points to caution over how quickly the Strait of Hormuz might fully reopen. US President Donald Trump said a naval blockade remains in effect and that there are no active negotiations with Tehran, while Iranian forces have escalated operations, bringing reported vessel attacks in the strait to eight this month.
It added that shipping risks remain high even though authorities say the waterway is open and mines are cleared, contributing to severely restricted transit. Data on Wednesday showed a slowdown in vessels using the route, with many owners avoiding it due to the lack of clear signals on any blockade lift.
Looking ahead, the piece notes that Iraqs cabinet approved new export mechanisms to route crude through specialized companies via alternative outlets. Deutsche Bank’s macro strategy team said the absence of negotiation signals supports higher Brent futures across the curve and raises the risk of prolonged elevated energy costs.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%