Hormuz Uncertainty Supports Oil Prices Amid Cautious Sentiment

Oil prices remain supported by ongoing uncertainty around the Strait of Hormuz. US President Donald Trump said Washington is 'semi-negotiating' with Iran, suggesting a focus on economic pressure rather than military escalation.

The situation remains uncertain, and a full reopening of the waterway may depend on progress in US-Iran talks. Meanwhile, US oil activity has continued to recover, with Baker Hughes data showing that the oil rig count rose by three to 454, the highest level since May 2025.

Speculative sentiment turned more cautious last week, with money managers cutting net long positions in both NYMEX WTI and ICE Brent. The net long position in NYMEX WTI fell by 7,257 lots to 101,050 lots, while the net long position in ICE Brent dropped by 20,361 lots to 164,722 lots.