BAB EL Mandeb

Oil prices stayed near a one week high as weaker optimism over a US Iran peace agreement kept geopolitical risk priced into crude markets. WTI is testing higher resistance after nearing $82, while Brent remains above $90.50 as traders monitor Hormuz flows, refinery delays, and technical breakout levels.

Crude oil futures dropped nearly 8% as traders priced in hopes of progress around the Strait of Hormuz, even as tanker movement has yet to confirm a reliable recovery. Tight U.S. crude inventories, weak demand signals, OPEC+ quota increases and shipping risks through Hormuz and Bab el-Mandeb now shape the next move for WTI and Brent.

WTI and Brent begin the week with traders focused on whether supply risk around Hormuz, Bab el-Mandeb and Saudi export infrastructure can keep the crude rally alive. Alternative barrels are getting more expensive as refiners chase supplies outside the Middle East while diplomacy competes with continued military escalation.