WTI hits three-week high as Iran deadlock supports Oil
West Texas Intermediate (WTI) US Oil rises 1.89% on Thursday and trades around $85.85 at the time of writing, after reaching a fresh three-week high at $87.38 earlier in the day.
West Texas Intermediate (WTI) oil prices climbed to a three-week high of $87.38 on Thursday due to disruptions in global energy supplies and tensions between the United States and Iran. WTI's rise is primarily driven by concerns over the closure of the Strait of Hormuz and Bab el-Mandeb Strait, which collectively account for around 27% of global energy supply.
US President Donald Trump has imposed economic pressure on Iran, warning that countries supporting Iran's financial institutions, businesses, airports, or government entities could face severe economic consequences. This includes an end to oil smuggling, swap lines, cash transfers, and other mechanisms that could aid the Iranian economy.
Consequently, fears have emerged that the Strait of Hormuz might remain closed for an extended period, further heightening risks to global energy flows. Meanwhile, Qatar sees talks between Iran and Oman over the management of the Strait of Hormuz as an important step towards restarting broader diplomatic efforts. Despite these challenges, WTI oil remains supported by a favorable technical outlook, holding above key moving averages and maintaining a bullish near-term bias.
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