Oil Prices Rise as Strait of Hormuz Uncertainty Returns

Crude oil prices rose on Monday as uncertainty over the Strait of Hormuz restored some of the geopolitical premium that had been erased last week.

Brent crude traded around $84.38 a barrel, while West Texas Intermediate (WTI) was near $78.75, leaving WTI just below an important technical resistance area at $80.

The Strait of Hormuz is a critical shipping route that handled roughly one-fifth of global oil flows before Iran attached conditions to reopening the route.

Analyst Viv notes that WTI faces a decision around $79-$80, and if it breaks through this level, it could potentially shift attention toward higher prices.

However, OPEC+ supply and U.S. inventories are limiting the upside in oil prices, and geopolitical risk is supporting prices but not driving them to become one-sided.