WTI Crude Oil edged toward $97.85–$98.00 early Monday in European trading as geopolitical tensions between the US and Iran continue to escalate. The price reaction comes after US President Donald Trump warned of potential strikes on Iran’s oil export facilities, including the strategic Kharg Island hub, and called on allies to help secure the Strait of Hormuz.
Traders are also awaiting the American Petroleum Institute (API) report due on Tuesday, which could further influence short-term movements.

Market Drivers:
Supply Fears: US-Iran tensions and threats to oil infrastructure have increased concerns over disruptions to Iran’s crude exports.
Geopolitical Escalation: Trump’s warning of expanded strikes if Tehran interferes with Hormuz shipping has heightened market caution.
Strategic Oil Release: The International Energy Agency (IEA) announced a historic release of 400 million barrels from strategic reserves to mitigate supply shortages and temper price spikes.

Analyst Insight:
Natasha Kaneva, Head of Global Commodity Strategy at JPMorgan, noted that the situation marks a major escalation in Middle East energy risks. While supply fears push prices higher, coordinated IEA releases may cap sharp upside in WTI crude temporarily.

Key Levels to Watch:
Resistance: $98.50–$99.00 (psychological and short-term supply barrier)
Support: $97.00–$96.50 (short-term demand zone)
Traders should monitor both geopolitical developments and inventory reports for clues on potential volatility in the coming sessions.
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