Brent Leads WTI Higher as Tanker Traffic Through Hormuz Near-Stalls

The Brent crude oil price led the WTI higher after U.S.-Iran talks failed again and tanker traffic through the Strait of Hormuz slowed to a near-standstill.

The failure of weekend talks between the United States and Iran has removed any remaining hopes for a quick resolution, leaving the market tight due to restricted Hormuz traffic. Despite weakening demand forecasts and building U.S. crude inventories, the supply premium is back as physical picture got worse over the weekend.

Buyers returned last week after a 5% rally, causing both contracts to gain more than 5%. The current bid suggests they are not finished yet, rebuilding the supply premium due to worsening tanker traffic conditions.