Snapshot: WTI crude is trading around $102.6 per barrel, up sharply following reports of heightened tensions in the Strait of Hormuz. Although a US official denied reports of a direct attack on a US warship, increased Iranian naval activity is raising concerns. Watch for risk sentiment into the NY open.
- Geopolitical risk remains elevated; monitor headlines regarding shipping disruptions in the Strait of Hormuz for potential upside catalysts.
- The moderately long positioning among speculators (75th percentile) introduces squeeze risk if prices break key support levels.
Bias into NY: Expect choppy trading in US Oil as traders assess the geopolitical risks and the impact on supply chains; $100 remains a key level to watch for support.