Oil Prices Stay Strong as Strait of Hormuz Tensions Persist

West Texas Intermediate (WTI) crude oil held firm on Monday, trading near $95 per barrel, as stalled US-Iran negotiations kept supply risks alive. The Strait of Hormuz, a vital energy corridor, remains disrupted, embedding a geopolitical premium into oil prices.


Uncertainty Over Reopening the Strait


Iran has floated proposals to reopen the Strait of Hormuz, but uncertainty lingers over Washington’s response. With around 2,000 commercial vessels and 20,000 seafarers stranded, the disruption continues to weigh heavily on global trade. Analysts warn that even if talks progress, the impact on shipping lanes could last well beyond the conflict.


Traders Watch for Breakthroughs


Markets remain highly sensitive to any signals from Washington or Tehran. A breakthrough in negotiations could ease supply concerns and pressure prices lower. Until then, WTI is expected to stay supported by ongoing disruptions and elevated geopolitical risk.


Market Mood: Bullish but Cooling


Despite recent volatility, WTI maintains a constructive bullish bias. Prices remain well above key support levels, with momentum indicators showing a more balanced tone after earlier overbought conditions. Immediate support lies near $86 per barrel, while deeper pullbacks could find buyers around $73 and $67.


The Bigger Picture

Oil’s resilience underscores how geopolitics continue to dominate market sentiment. With the Strait of Hormuz still under strain, traders are bracing for further volatility. For now, the energy market remains caught between fragile diplomacy and persistent supply risks.