West Texas Intermediate (WTI) futures on NYMEX jumped 7.6% to nearly $98.00 during the Asian trading session on Monday, following a warning from US President Donald Trump that he has instructed the navy to blockade 'any or all ships trying to enter or leave' the Strait of Hormuz, a passage critical to almost 20% of global energy supply [1]. This move comes after talks between Iran and US Vice President JD Vance failed, with Tehran refusing to drop its nuclear ambitions [1]. Trump further ordered the navy to 'seek and interdict every vessel in International Waters that has paid a toll to Iran,' stating that 'no one who pays an illegal toll will have safe passage on the high seas' [1]. The US Central Command (CENTCOM) announced that forces will begin the blockade of all maritime traffic entering and exiting Iranian ports on Monday at 10 AM ET (14:00 GMT) [1].
In response to these developments, Saudi Arabia announced the restoration of full pumping capacity of its East-West pipeline to seven million barrels per day (bpd), rehabilitating a vital link for oil exports via the Red Sea, according to Bloomberg [1]. Technical analysis indicates WTI trades at around $98, maintaining a bullish near-term bias as price holds well above the 20-day exponential moving average (EMA) at $93.41. The Relative Strength Index (14) at 56.23 suggests upside momentum is moderating but not reversing [1]. The first meaningful support is at the 20-day EMA near $93.41, with buyers expected to emerge on a corrective pullback. A daily close below this moving average would weaken the immediate bullish structure, while holding above it keeps the door open for renewed attempts to extend the advance toward higher highs at around $106.70 [1].
The market reaction has been significant, with WTI prices rallying sharply on heightened concerns over global energy supply disruptions due to the potential blockade of the Strait of Hormuz [1]. The restoration of Saudi Arabia's pipeline capacity may help mitigate some supply concerns, but the immediate sentiment remains bullish for oil prices [1].
No forward-looking statements or analyst opinions beyond technical analysis were provided in the source article [1].
CONCLUSION
WTI oil prices surged on escalating geopolitical tensions and supply disruption fears following President Trump's directive to blockade the Strait of Hormuz. The restoration of Saudi Arabia's pipeline capacity offers some relief, but market sentiment remains bullish as traders anticipate further price advances. The situation has triggered a high-impact reaction in the oil market, with technical indicators supporting continued strength.