FX.co ★ Crude Oil Holds Strong Above $96

WTI crude futures climbed above $96 a barrel on Friday, as the effective shutdown of the Strait of Hormuz and escalating geopolitical tensions overshadowed Washington’s latest efforts to stabilize global energy prices. The US Treasury granted a 30-day license allowing countries to purchase 100 million barrels of Russian oil currently stranded at sea in a bid to ease market pressures. However, Iran’s new Supreme Leader, Mojtaba Khamenei, has insisted the strategic waterway will remain closed. The blockade has removed roughly 20% of global seaborne oil trade and forced Gulf producers to cut output by 10 million barrels per day as storage capacity approaches critical limits. Although an Indian tanker successfully passed through the strait on Friday, analysts warn the relief is likely to be short-lived, with GPS jamming and the ongoing threat of missile strikes continuing to disrupt about 90% of normal traffic.