WTI surges above $74.00 as US-Iran strikes reignite Hormuz risks
West Texas Intermediate (WTI) oil price rises after two days of losses, trading around $74.20 during the Asian hours on Monday. Crude oil prices gain ground following a weekend exchange of fresh missile strikes between the United States (US) and Iran, reigniting fears over the safety of commercial shipping through the strategic Strait of Hormuz.
According to Bloomberg, the US Central Command (CENTCOM) launched additional strikes on Sunday evening, aimed at weakening Iran's capability to target civilian vessels navigating the waterway.
Reuters reported that US forces have hit more than 300 Iranian targets over a three-night span, including 140 on Saturday alone, while Washington and Tehran issued conflicting declarations regarding whether the strait remains open to maritime traffic.
This latest surge in hostilities has effectively reversed a portion of the market losses recorded last week, which had been driven by an interim US-Iran peace agreement that initially fueled expectations of increased Middle Eastern energy supplies.
The sudden military escalation has also severely dampened hopes for continued diplomacy. Tehran is now digging in, insisting that Washington must fully honor its previous commitments regarding shipping transit and the normalization of Iranian oil exports before any further negotiations can resume.
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