West Texas Intermediate holds near $74.00 despite heightened tensions and reduced Strait of Hormuz traffic, as inventories rise.
West Texas Intermediate crude remains below $75.00, failing to extend gains despite escalating Middle East conflict and the closure of the Strait of Hormuz. The benchmark briefly touched $74.00 before retreating in early European trading, reflecting investor reluctance to price in full-scale war risks that previously drove prices above $100.00 in April and May.
Last week’s high of $75.73 remains unchallenged, while Friday’s EIA report showed a 3 million-barrel increase in US crude inventories for early July. The build eased supply shortage concerns, countering geopolitical fears. Traffic through the Strait of Hormuz fell to multi-week lows, though the US claims some vessels have been escorted through the critical chokepoint.
Iran’s proposal for a joint mechanism with Oman over the strait’s status has been hindered by US pressure, according to an Iranian Foreign Ministry spokesperson. Speculative traders appear cautious, avoiding aggressive positioning despite the weekend’s reciprocal attacks between the US and Iran.