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West Texas Intermediate (WTI) crude oil prices retreated from a one-week high near the $100 psychological level during the Asian session on Monday. The failure to breach $100 comes amid ongoing efforts to reopen the Strait of Hormuz, a critical global oil transit chokepoint. Traders are closely monitoring geopolitical developments in the region, as any disruption in this vital shipping lane could significantly impact global energy markets. The price pullback reflects cautious sentiment ahead of potential supply shocks, despite strong demand from Asian markets. The Strait of Hormuz accounts for nearly 20% of global oil trade, making it a key driver of crude prices. A prolonged closure or instability in the region could trigger a sharp rally in oil prices, while a swift resolution would ease upward pressure. Investors should watch for updates on tanker movements and diplomatic negotiations between regional stakeholders. The $100 level remains a critical technical resistance for WTI, with a break above it likely to target $105-$110. For Gulf investors, the situation highlights the region's strategic vulnerability to geopolitical risks. Energy-dependent economies in the Middle East may face higher import costs if the Strait remains closed. Traders should also monitor OPEC+ production decisions and US shale output trends, which could offset regional supply disruptions. Key technical levels to watch include $95 (support) and $100 (resistance) for WTI.
