Increased oil flow through the Strait of Hormuz eases supply concerns, pressuring WTI prices despite ongoing Gulf tensions.
West Texas Intermediate crude fell for a second day, trading just above $80.00 as traffic through the Strait of Hormuz rose to 30%-35% of pre-war levels. Analysts suggest further recovery to 50%-60% could trigger oversupply conditions, weighing on prices.
WTI remains on track for a monthly gain exceeding 15%, supported by earlier supply disruptions. Saudi Arabia’s coalition to secure sea routes added downward pressure, though persistent Gulf tensions limit losses.
Geopolitical risks persist, with Iran-linked attacks on US bases and missile interceptions reported. Market sentiment remains cautious as disruptions continue to tighten global energy supplies.