WTI rises nearly 2% on Strait of Hormuz closure, shaky peace talks

West Texas Intermediate (WTI) – the US oil benchmark – opened Monday’s Asian trading with an over $1 bullish gap, retesting the $78 mark, nearly up 2% in early dealings.

The black gold is still up 1.15%, as of writing, holding above $77 as oil supply concerns resurface after Iran closed the Strait of Hormuz again on Saturday in response to the renewed hostilities by Israel in Lebanon.

US President Donald Trump verbally threatened to strike Tehran ‘harder’ following the Strait of Hormuz closure and against the Iran-backed militant group – Hezbollah - in Lebanon.

In protest to Trump’s threats, Iranian negotiators walked out of the high-stakes talks with the US in Switzerland, raising concerns about the resumption of the peace negotiations between both sides.

Iran and the US last week signed a memorandum of understanding (MoU) designed to lift the blockade on the Strait of Hormuz, leading to 60 days of talks on Iran’s civil nuclear programme. 

Looking ahead, all eyes remain on the US-Iran headlines, which could significantly influence the Oil price action, especially if Israel continues to strike Lebanon.