WTI remains volatile amid persistent geopolitical risks and supply disruptions

West Texas Intermediate (WTI) Crude Oil trims part of earlier gains and edges lower on Tuesday as traders struggle to extend the rally at elevated levels while continuing to assess geopolitical developments surrounding the US-Iran war and ongoing supply disruptions through the Strait of Hormuz.

At the time of writing, WTI trades around $94.85, easing from the daily high of $97.36 touched during the European trading session.

The lack of upward momentum suggests that markets may have largely priced in the current situation, though uncertainty remains elevated as the conflict shows no clear signs of de-escalation. Iran continues to target key energy infrastructure across the Persian Gulf, further straining global supply and helping to limit downside in crude prices despite the latest pullback.

Shipping through the Strait of Hormuz remains a key focus of the US-Iran war, though markets are seeing some relief as limited flows continue. Several countries, including China, India, Pakistan and Türkiye, are securing or seeking passage for their vessels through talks with Iran, while European nations such as France and Italy are also in discussions.

Meanwhile, International Energy Agency (IEA) Executive Director Fatih Birol said it will take time for global energy trade to recover, adding that the agency stands ready to release additional stockpiles if needed.

Iran’s Foreign Minister Abbas Araghchi said recently that the Strait of Hormuz would be closed only to “enemies and those supporting their aggression,” according to Iran’s SNN news agency.

Separately, US President Donald Trump asked allied nations that rely on the route to help secure the Strait of Hormuz and send warships. However, several key US allies have refused to send them.

Arsenio Dominguez, Secretary-General of the International Maritime Organization (IMO), said naval escorts through the Strait of Hormuz would not “100 per cent guarantee” the safety of ships transiting the critical waterway. He added that military assistance is “not a long-term or sustainable solution,” according to the Financial Times.