WTI Edges Higher to Near $78 as Middle East Tensions Offset Hormuz Hopes
West Texas Intermediate crude futures rose to around $77.80, paring recent losses, as escalating conflict risks in the Middle East counteracted optimism over a potential reopening of the Strait of Hormuz.
NYMEX WTI futures extended their modest recovery on Thursday, trading near $77.80 per barrel. The move comes after two weeks of underperformance driven by hopes that the Strait of Hormuz – a chokepoint for nearly 20% of global energy flows – might soon reopen.
That optimism is now being tempered by growing internal war risks across the Middle East. The renewed geopolitical uncertainty is supporting a floor under oil prices, allowing the benchmark to bounce off recent lows.
While the supply-chain concerns have not yet materially disrupted physical flows, traders are reassessing the risk premium embedded in crude. Further escalation could provide additional upside, though reopening talks remain a wildcard.
Source: FXStreet Forex News