Crude Oil Rises as Trump Signals No Iran Deal Extension

Crude oil prices rose on Monday after US President Donald Trump indicated that he was not interested in extending the interim peace arrangement between the United States and Iran, which expired on Monday.

The development increased uncertainty around future oil flows through the Strait of Hormuz, a strategically important waterway. Iran and Oman are discussing ways to manage shipping through this route, while the US is unlikely to support any arrangement that does not ensure unrestricted passage.

Middle Eastern producers have been using alternative routes to move crude through and around Hormuz, helping maintain global supplies despite geopolitical risks.

The CFTC reported a rise in net long positions for WTI crude oil by 4,034 contracts to 105,860 contracts in the week ended August 11, improving speculative sentiment. However, demand expectations remain under pressure due to lower OPEC and IEA forecasts for global oil demand growth.

US inventory data showed a surge of 17.4 million barrels to 424.4 million barrels in the week ended August 7, exceeding expectations for a 1.4 million-barrel draw. Crude stocks at Cushing increased by 1.6 million barrels, while gasoline and distillate inventories declined.

Technically, crude oil is under short covering with open interest falling sharply by 49.54% to 5,608 contracts while prices gained ₹80. Immediate support is placed at ₹8,078, below which prices could test ₹8,012, while resistance is seen at ₹8,218.