Oil News: Crude Oil Futures Surge as Hormuz Risks Revive $100 Outlook
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Key Points:
- WTI crude oil surged above its 50-day moving average as traders rushed to reprice Middle East supply risks.
- Failed U.S.-Iran ceasefire talks erased May's bearish oil narrative and revived the path toward $100 crude.
- Strait of Hormuz disruptions continue to tighten oil supply flows, adding a strong risk premium to futures.
July West Texas Intermediate crude oil ripped above $91 on Monday. Spot Brent crude oil hit $97.74. The ceasefire talks collapsed over the weekend. Iran shut down negotiations. The U.S. hit Iranian military targets. Iran struck back at a U.S. base. The Strait of Hormuz is not reopening anytime soon and the market just repriced that reality in one session. May’s 17% decline in West Texas Intermediate crude oil is getting erased fast. Washington is waiting on Tehran and the chart is waiting on $100. Here is what breaks first.