WTI Oil Prices Slip Amid Ongoing Middle East Tensions

West Texas Intermediate (WTI) oil prices retreated on Monday despite ongoing tensions in the Middle East. The market's pullback comes after a gain of more than 5% last week, but buyers still retain a slight technical edge.

The immediate geopolitical risk is heightened as the US is set to announce fresh sanctions against Iran, while Tehran has threatened to halt oil exports through the Strait of Hormuz and elsewhere in the Persian Gulf if Washington proceeds with its plans.

According to strategists at BBH, the scale of Scott Bessent's proposed campaign is unprecedented and will have far-reaching consequences. They highlight that China, Iran's largest trading partner, buys roughly 90% of its oil exports and Beijing's reaction will be pivotal in determining the direction of risk sentiment.