Crude Oil Price Rally Faces Skepticism Amid US-Iran Tensions

Crude oil prices have seen a recent rally, but traders remain skeptical about its sustainability. The Strait of Hormuz has been closed to traffic on several occasions this year due to tensions between Iran and the US.

Despite the closure, crude oil prices strengthened on Monday. However, investors are viewing President Trump's 'low-key approach' and 'semi-negotiation' strategy with Iran as a cautious sign in negotiations.

The recent weak jobs report has dampened confidence among investors who favor the strength of the US economy. This week's CPI data is expected to show a continued slowdown in core inflation, which could reduce the appeal of crude oil futures as a hedge against the risk of the Federal Reserve raising rates early.