WTI slips below $76.50 despite uncertainty over reopening Strait of Hormuz
West Texas Intermediate (WTI) oil price depreciates after registering over 4% gains in the previous trading day, hovering around $76.40 per barrel during the Asian hours on Monday.
West Texas Intermediate (WTI) oil slipped below $76.50 per barrel despite lingering uncertainty over the potential reopening of the Strait of Hormuz. The oil price had surged over 4% in the previous trading day. However, tensions surrounding the Strait of Hormuz could see crude oil prices rebound. Iran reportedly reached a deal with Oman to establish a safe shipping route through the Strait, though Tehran warned that any agreement wouldn't lead to an immediate reopening.
Meanwhile, regional security concerns persist; Iran-backed Houthi militants in Yemen attacked Saudi Arabia's Jazan refinery, and a tanker operated by Abu Dhabi National Oil Co. was attacked in the Strait. Iran continues to reject direct negotiations with the US, demanding an end to the US naval blockade, sanctions lifting, and compensation for war damages.
Despite pressure on the US administration to resolve the standoff, President Trump has shown patience. Israeli Prime Minister Benjamin Netanyahu also rejected President Trump's 15-point Gaza plan, which further complicates the situation. With Iran backing Hamas, the conflict in Gaza remains entangled with the broader US-Iran standoff.
Despite high-frequency data indicating a meaningful deficit in global crude balances, energy markets hold out hope for a deal, and constructive fundamentals along with optimism about potential deal-making are currently anchoring sentiment in WTI and Brent.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
