In the ongoing Strait of Hormuz crisis, crude oil prices fell below $100 a barrel following announcements that US-Iran talks will resume on Thursday—easing some geopolitical risk after last week's US naval blockade. West Texas Intermediate (WTI) crude spiked to $105 at the Globex open before correcting to around $98, amid persistent supply disruptions.
Energy markets showed sharp volatility at the week's open amid the Strait of Hormuz crisis, now in its fourth week since Iran's initial blockade and the US Navy's response after failed ceasefire talks. WTI crude gapped to $105 before dropping below $100 to settle around $98, as traders reacted to news of US-Iran negotiations resuming Thursday. This eased part of the geopolitical risk premium that had propelled prices above $100 following the escalations reported last weekend.
Despite the dialogue, analysts from Seeking Alpha and The Economic Times warn of lingering uncertainty, with a naval standoff, supply constraints in the strait, and risks of renewed spikes if talks falter. Brent crude mirrored the pattern, underscoring broader market caution. The price retreat offers temporary relief but highlights the crisis's volatility, with high fuel costs still pressuring global economies ahead of US midterms.
