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WTI slips below $85 as traders trim ahead of tougher Iran sanctions
WTI was around $84.8 per barrel, with Commerzbank noting Strait of Hormuz risks are driving near term sentiment before traders turn to inventory trends.
West Texas Intermediate crude fell after two days of gains, trading around $84.8 per barrel during Monday’s Asian hours as investors took profits ahead of an expected US move to tighten sanctions on Iran, according to FXStreet.
FXStreet reported that US Treasury Secretary Scott Bessent said the administration plans what he described as the toughest sanctions in history, aimed at forcing Iran and its trade partners into compliance. The policy shift could further disrupt Iranian oil shipments, while friction around the Strait of Hormuz remains elevated, with vessel traffic through the key corridor running well below historical averages.
FXStreet cited Commerzbank strategists saying developments around the Strait of Hormuz remain the focus for energy markets. With no major reports scheduled, attention is also expected to shift to inventory trends, and the outlet noted that diesel inventories are particularly tight, a factor seen as supportive for Brent.
On the chart, FXStreet said WTI holds a constructive bullish bias while it remains above the nine-period and 50-period exponential moving averages, and that the 14-day relative strength index is near 56.1, suggesting steady, not overstretched, momentum. Initial support is cited near the nine-period EMA around $83.9, with the 50-period EMA near $81.6 if a deeper pullback develops.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%