West Texas Intermediate (WTI) Crude Oil prices remained firm on Monday, trading around $95.00 per barrel, as ongoing disruptions in the Strait of Hormuz and stalled US-Iran peace talks continued to support elevated price levels [1]. According to a report by Axios, Iran has presented a new proposal to the United States aimed at reopening the Strait of Hormuz and ending the war, while deferring nuclear negotiations to a later stage. However, White House Press Secretary Karoline Leavitt stated that US President Donald Trump had discussed the proposal with his team but clarified, 'I would not say that the United States is considering Iran’s proposal' [1].
The Strait of Hormuz remains under a dual US-Iran blockade, which has embedded a geopolitical risk premium in oil prices due to significant supply disruptions [1]. Arsenio Dominguez, head of the United Nations’ maritime agency, reported that approximately 2,000 commercial vessels and 20,000 seafarers are currently stranded in the Strait of Hormuz. He further warned that disruptions in the waterway are likely to persist long after the conflict ends [1].
Market participants are closely monitoring developments in US-Iran negotiations, particularly any signals from Washington regarding the proposal and progress toward reopening the Strait of Hormuz. A breakthrough in talks could ease supply concerns and potentially weigh on oil prices, but until then, WTI is expected to remain supported amid ongoing supply risks [1].
From a technical perspective, WTI maintains a constructive bullish bias, trading well above key moving averages: the 50-day Simple Moving Average (SMA) at $85.97, the 100-day SMA at $72.87, and the 200-day SMA at $67.40, all of which underpin the broader uptrend. The Relative Strength Index (14) is around 55, indicating a more balanced but still positive tone, while the Average Directional Index (14) near 24 suggests that trend strength has eased from prior elevated levels [1]. Immediate support is seen at the 50-day SMA ($85.98), with further support at the 100-day ($72.88) and 200-day ($67.41) SMAs [1].
CONCLUSION
WTI crude oil prices are being buoyed by persistent supply disruptions in the Strait of Hormuz and a lack of progress in US-Iran negotiations. Unless a diplomatic breakthrough occurs, oil prices are likely to remain supported by ongoing geopolitical risks and supply concerns.