WTI Holds Gains Above $96.00 as the Strait of Hormuz Remains Largely Shut
- WTI surged more than 3% as the Strait of Hormuz remained largely shut on Tuesday.
- A drone strike sparked a fire at the UAE’s Fujairah Oil Industry Zone.
- US allies hesitate to deploy warships to escort tankers through the strait.
West Texas Intermediate (WTI) Oil price recovers its recent losses registered in the previous session, trading around $96.10 per barrel during the European hours on Tuesday. WTI price surged more than 3% at the time of writing, driven by renewed supply concerns as the Strait of Hormuz remains largely shut and US allies resist deploying warships to escort tankers through the vital chokepoint.
Iran has intensified attacks on regional energy infrastructure. A drone strike triggered a fire at the UAE’s Fujairah Oil Industry Zone, though no injuries were reported. Middle East crude benchmarks have climbed to record highs, becoming the most expensive globally, with traders attributing the spike to tightening supply.
Most countries have so far pushed back against US President Donald Trump’s call to send naval escorts through the strait, drawing criticism from the president, who accused Western allies of ingratitude after years of support.
Despite the earlier rally, WTI price dropped more than 4.25% on Monday after several tankers safely transited the Strait of Hormuz over the weekend, raising hopes for a potential reopening. India is also negotiating additional vessels, while several nations engage in back-channel talks with Iran to secure safe passage. Meanwhile, the US continues to allow Iran to ship crude through Hormuz, and reports suggest a direct communication channel between Washington and Tehran has been activated.
