WTI holds losses near $97.50 as 30 vessels navigate through Hormuz

West Texas Intermediate (WTI) oil price remains in the negative territory after posting modest gains in the previous day, trading around $97.60 per barrel during the Asian hours on Friday. However, WTI crude is on track to rise more than 6% this week as stalled diplomatic efforts to end the United States (US)-Iran conflict leave the strategically vital Strait of Hormuz effectively closed.

Although prices dipped slightly following reports from Iranian state media that 30 vessels had successfully navigated the Hormuz, market anxiety remains high due to recent ship seizures and attacks.

The ongoing "dual blockade" of this key shipping route has become a primary sticking point in negotiations. US President Donald Trump recently characterized the current ceasefire as being on “massive life support” after dismissing Tehran’s latest response to his peace proposal.

Amid the tension, a potential shift in energy trade emerged following a two-hour summit in Beijing between Presidents Trump and Xi Jinping. The White House reported that President Xi expressed interest in purchasing more American oil to diversify China's energy sources and reduce its reliance on the volatile Strait of Hormuz.

However, the supply outlook remains grim. The IEA reported that crude and fuel flows through the Strait plunged by approximately 4 million barrels per day during March and April. The agency warned that even if the conflict is resolved by next month, the global oil market could remain significantly undersupplied through October.