WTI Slides Below $84 as Stronger Dollar Weighs on Crude Oil Demand
West Texas Intermediate (WTI) crude oil prices slid below $84.00 in early European trading hours, weighed down by a firmer US Dollar. The commodity had earlier touched an intraday high of $85.35 before reversing course and falling for the second consecutive day.
The strengthening USD is seen as a key factor undermining demand for USD-denominated commodities, including crude oil. However, the risk of further escalation in US-Iran tensions may limit deeper losses in WTI prices.
Treasury Secretary Scott Bessent warned countries to cut financial ties with Iran or face being cut out of the dollar-based financial system. Meanwhile, Iran has vowed to shut down all oil exports from the Gulf if the economic war continues.
US Defense Secretary Pete Hegseth said the US would not rule out using military force against Iran, keeping the geopolitical risk premium in play and potentially supporting crude oil prices.