WTI.Oil Rallies to $98 as Trump aims to blockade Hormuz

• The oil price jumps higher as US President Trump orders the complete blockade of the Strait of Hormuz.
• US-Iran talks failed as Tehran remains stuck to pursuing its nuclear ambitions.
• Saudi Arabia restores the full pumping capacity of its East-West pipeline to seven million barrels a day.

West Texas Intermediate (WTI), futures on NYMEX, trade 7.6% higher to near $98.00 during the Asian trading session on Monday. The oil price rises after a warning from United States (US) President Donald Trump, through a post on Truth.Social, that he has instructed the navy to blockade “any or all ships trying to enter or leave” the Strait of Hormuz, a critical passage to almost 20% of global energy supply. This has further raised concerns over the global energy supply.

US President Trump’s threats to block the Hormuz came after talks between Iran and US Vice President (VP) JD Vance failed due to Tehran’s refusal to drop its nuclear ambitions.

In addition, US President Trump has also ordered the navy to “seek and interdict every vessel in International Waters that has paid a toll to Iran”, adding that “no one who pays an illegal toll will have safe passage on the high seas”.

The US Central Command (CENTCOM) announced that the “Forces will start blockade of all maritime traffic entering and exiting Iranian ports on Monday, 10 AM ET” (14:00 GMT).

Meanwhile, Saudi Arabia has announced that it has restored the full pumping capacity of its East-West pipeline to seven million barrels a day (bpd), rehabilitating a vital link for oil exports via the Red Sea, Bloomberg reported.

WTI technical analysis

In the daily chart, WTI US Oil trades at around $98, maintaining a bullish near-term bias as price holds well above the 20-day exponential moving average (EMA) at $93.41. The distance from this rising EMA suggests underlying trend support remains intact, while the Relative Strength Index (14) at 56.23 has eased out of overbought territory, hinting that upside momentum is moderating rather than reversing.

On the downside, the first meaningful support aligns with the 20-day EMA near $93.41, where buyers would be expected to emerge on a corrective pullback while the broader uptrend stays in place. A daily close below this moving average would weaken the immediate bullish structure and expose deeper retracements, whereas holding above it keeps the door open for renewed attempts to extend the advance toward higher highs at around $106.70.