WTI crude was steady on Monday near $95.00 a barrel, with volatility linked to US-Iran talks and disruption in the Strait of Hormuz. Reports said Iran sent a proposal to the US to reopen the waterway and end the war, while leaving nuclear talks for later.
The White House said President Donald Trump discussed the proposal, but the US is not considering it. The Strait of Hormuz remains under a dual US-Iran blockade, with supply still disrupted.
Strait Of Hormuz Disruption And Market Impact
The head of the UN maritime agency said about 2,000 commercial vessels and 20,000 seafarers are stranded in the Strait of Hormuz. Disruption in the waterway may continue after the conflict ends.
On charts, WTI stayed above key moving averages, with the 50-day SMA at $85.97, the 100-day SMA at $72.87, and the 200-day SMA at $67.40. The RSI (14) was near 55 and the ADX (14) near 24.
Support levels were cited at the 50-day SMA at $85.98, then the 100-day SMA at $72.88 and the 200-day SMA at $67.41. WTI is a US-sourced light, sweet crude priced at the Cushing hub.
WTI prices are driven by supply and demand, political events, OPEC decisions, and the US Dollar. API inventory data is published Tuesday and EIA data Wednesday, with results within 1% of each other 75% of the time.
Market Conditions In April 2026
As we look at the market on April 28, 2026, the situation has changed dramatically from the tensions we saw throughout 2025. We remember how WTI crude held firm around $95 a barrel this time last year due to the complete blockade of the Strait of Hormuz. With a fragile diplomatic resolution reached late in 2025 allowing limited transit, that acute risk premium has vanished, and prices are now consolidating around $78 a barrel.
The market’s focus has shifted from singular geopolitical flashpoints to broader fundamentals of supply and demand. In response to the price drop following the Hormuz reopening, OPEC+ initiated production cuts of 2.2 million barrels per day in January 2026, which are providing a floor for prices. However, the latest IEA report this month showed global demand growth slowing to its lowest level since 2022, creating a tug-of-war between managed supply and weakening consumption.
For derivative traders, this means implied volatility has fallen sharply from the highs we experienced during the 2025 crisis. The CBOE Crude Oil Volatility Index (OVX) has settled from peaks near 55 to a more subdued 32, making options significantly cheaper than they were a year ago. This environment is less favorable for buying outright protection and suggests strategies that can benefit from range-bound price action are now more appropriate.
Unlike last year’s clear bullish trend, the technical picture now shows WTI trading within a well-defined channel, with the old 50-day SMA of around $86 now acting as major resistance. We are seeing a move away from simple long futures positions toward more defined-risk option strategies, like selling puts below $70 or establishing call spreads to target a modest recovery. The play is no longer about preparing for supply shocks, but about navigating a market caught between production discipline and economic headwinds.
