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West Texas Intermediate (WTI) crude oil surged by 3.18% to $94.70 per barrel on Monday, driven by U.S. President Donald Trump's rejection of a proposed peace plan with Iran and escalating fears of a potential closure of the strategic Strait of Hormuz. The price jump followed a significant bullish gap-up at the start of the week, reflecting heightened geopolitical tensions in the Middle East. Analysts attribute the rally to concerns over energy supply disruptions, as the Strait of Hormuz accounts for nearly 20% of global oil exports.
The move underscores the sensitivity of oil markets to geopolitical risks, particularly in the Gulf region. Traders are closely monitoring developments between the U.S. and Iran, with any escalation in hostilities likely to further destabilize prices. The situation also highlights the interconnectedness of global markets, where regional tensions can rapidly translate into broader economic impacts.
For investors, the current volatility presents both risks and opportunities. The focus will remain on Trump's stance toward Iran and potential military posturing. Additionally, traders should watch for updates on OPEC+ production policies and U.S. shale output, which could influence the balance between supply and demand in the coming months.
