Hormuz Tensions Send Oil Prices Soaring Amid Breakout Attempt

Oil prices have surged at the start of the week as geopolitical tensions surrounding the Strait of Hormuz remain high. The technical outlook for WTI is improving, with a potential breakout from a corrective Elliott Wave zig-zag structure.

The recent price action has seen WTI rebound toward $79-$80 after falling through a classic A-B-C corrective sequence. If the market can sustain a move above the descending trendline, it would strengthen the case that the pullback has run its course.

Supporting oil prices is the ongoing uncertainty surrounding the Strait of Hormuz. US President Donald Trump's comments on 'semi-negotiating' with Iran suggest continued economic pressure rather than an immediate military escalation.