WTI Crude Pares Early Gains as Hormuz Reopening Clarity Awaited

West Texas Intermediate crude oil futures on NYMEX traded 1.6% higher at around $77.55 during Monday’s European session, giving back a portion of earlier gains. The contract had spiked earlier in the day on mounting fears of prolonged global energy supply disruptions.

Investors, however, turned cautious as they awaited clarity on the reopening of the Strait of Hormuz, the critical waterway whose closure threatened to tighten supplies. This search for confirmation triggered a retreat from intraday highs, though prices remained supported.

The session’s price action underscores the market’s sensitivity to geopolitical developments around Hormuz, with traders poised for any signal that could either exacerbate or alleviate supply worries. Oil markets are likely to remain volatile until the situation is resolved.