WTI crude futures rise as traders cover short positions amid geopolitical risks in the Strait of Hormuz.
West Texas Intermediate crude futures rebound to $71.50, up more than 2% on Thursday, ending a three-day decline. The move follows a selloff to a three-month low, prompting short covering among traders.
Prior to the rebound, WTI had fallen sharply amid broader market concerns and oversupply fears. The recent drop marked the lowest level since early April, before geopolitical tensions resurfaced.
Traders are closely monitoring developments in the Strait of Hormuz, a critical chokepoint for global oil shipments, which may sustain upward pressure on prices.