WTI futures fall 1.5% to $101.80 amid stalled US-Iran talks and rising expectations of a Fed rate increase this year.
West Texas Intermediate crude futures retreated to $101.80, down nearly 1.5% in European trading, despite ongoing geopolitical risks in the Middle East. The decline comes as negotiations between the US and Iran show no signs of progress, with President Trump threatening further military action if no deal is reached.
Uncertainty over the reopening of the Strait of Hormuz, a key chokepoint for global oil flows, persists. Qatar’s Foreign Ministry warned that normal traffic has not resumed, though regional leaders are engaged in dialogue to prevent escalation. Meanwhile, Fed rate hike expectations have surged, with markets pricing a 56.3% chance of at least one increase this year, up from earlier bets on cuts.
Technical analysis shows WTI holding above its 20-day EMA at $98, maintaining a near-term bullish bias despite the pullback.