Oil prices rise as prolonged Strait of Hormuz closure disrupts global supply, offsetting mixed US-Iran negotiation signals.
West Texas Intermediate crude futures climbed 0.7% to $102.75 in European trading, approaching a two-month high. The rally stems from ongoing disruptions in the Strait of Hormuz, a critical chokepoint for nearly 20% of global oil flows, amid stalled US-Iran talks.
Prices remain supported above the 20-day Exponential Moving Average at $97.50, with the 14-day Relative Strength Index at 59 indicating bullish momentum. Earlier, Iran’s Foreign Ministry confirmed negotiations through Pakistan but demanded sanctions relief and frozen funds release as key conditions.
Market sentiment was tempered by expectations the Federal Reserve may delay rate cuts this year, potentially capping further gains.