Hormuz Standoff Keeps WTI Prices Below $84.50 Amid Ongoing Geopolitical Tensions

West Texas Intermediate (WTI) oil is consolidating below $84.50, holding near a two-week high as geopolitical tensions in the Strait of Hormuz persist. The standoff has raised fears of potential supply disruptions, with approximately 20% of global oil consumption passing through this critical chokepoint.

The consolidation follows a rally that pushed WTI to its highest level in two weeks, driven by heightened geopolitical risk in the Strait of Hormuz. However, the lack of immediate escalation has prompted some profit-taking, keeping prices in a narrow range.

Despite the uncertainty, OPEC+ production cuts and declining U.S. inventories provide a supportive backdrop for oil prices. The market is also watching for any diplomatic developments that could ease tensions and trigger a sell-off.