Geopolitical uncertainty in the Strait of Hormuz offsets recent crude selloffs, stabilizing WTI prices after a 25% decline.
West Texas Intermediate crude steadied around $70.00 on Monday, halting a weeks-long decline as tensions in the Strait of Hormuz introduced fresh uncertainty. Investors weighed conflicting reports over the waterway’s status, a critical chokepoint for global oil shipments, following reciprocal attacks between the U.S. and Iran over the weekend.
WTI had fallen nearly 25% in recent weeks before Monday’s pause. While U.S. officials suggested peace talks could resume this week, Iran’s deputy foreign minister denied plans to meet U.S. technical teams. The Strait of Hormuz remained a flashpoint, with Iran asserting control over traffic and the U.S. Navy raising alert levels for vessels.
Markets showed muted reaction, with prices holding flat as traders awaited clarity on both diplomatic efforts and maritime security. The mixed signals left near-term oil price direction uncertain, despite the recent downward trend.