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Key Moments

  • WTI trades near $90.80 per barrel in Asian hours on Thursday after a modest prior-day advance.
  • Iran reiterates its nuclear stance and warns it will curb navigation through the Strait of Hormuz while US sanctions persist.
  • TD Securities highlights rising speculative positioning and warns crude is increasingly vulnerable to headline-driven swings.

WTI Pullback Amid Heightened Geopolitical Uncertainty

West Texas Intermediate (WTI) crude gives back part of its recent gains, slipping after a modest rise in the previous session and changing hands around $90.80 per barrel during Asian trading on Thursday. Despite the setback, crude prices may find support from renewed uncertainty surrounding the trajectory of diplomatic engagement between the United States and Iran.

Iran Signals Hard Line on Nuclear Policy and Strait of Hormuz

Addressing the UN General Assembly, Iranian President Masoud Pezeshkian stated that Tehran would not bow to threats and reiterated the country’s claim to pursue nuclear technology for economic development. He also underscored that Iran would restrict freedom of navigation through the key Strait of Hormuz for as long as US sanctions and blockades remain in place.

US Diesel Export Moves and Shifting Energy Flows

In response to concerns over domestic energy conditions, US Energy Secretary Chris Wright said the Trump administration is working with US refiners on a voluntary plan to curb diesel exports, positioning the move as an alternative to imposing a formal ban on overseas shipments.

At the same time, broader energy market dynamics continue to evolve. Saudi Arabia is preparing to restart crude exports through its important East-West pipeline, while Ukrainian President Volodymyr Zelenskyy disclosed recent talks with President Donald Trump focused on a potential energy ceasefire.

DevelopmentKey Detail
WTI price actionTrading around $90.80 per barrel during Asian hours on Thursday
Iran stanceRefuses to yield to threats; insists on nuclear technology rights; signals limits on Strait of Hormuz navigation under US sanctions
US diesel exportsAdministration works with refiners on voluntary export reductions instead of a formal ban
Saudi export routesMoves to resume flows via East-West pipeline
Ukraine-US talksZelenskyy notes discussions with Trump on a potential energy ceasefire

TD Securities: Sentiment Dominates as Positioning Builds

Crude market sentiment remains cautious as traders react to a steady stream of geopolitical developments and deal-related headlines. TD Securities notes that participants are approaching recent “deal headlines” warily, with its strategists stating they “remain skeptical of any deal headlines until there is actually something concrete.”

The firm warns that speculative participation in crude has become increasingly elevated, making prices more susceptible to rapid shifts in mood: as positioning builds, “the more prone the market is to the daily headline flow,” reinforcing the view that current resilience in crude is growing more dependent on sentiment than on underlying fundamentals.

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