WTI Whipsaws as Hormuz Reopening Hopes Clash with Diesel Crunch

WTI crude futures swung this week on conflicting signals over a possible reopening of the Strait of Hormuz, falling to $88.67 on unconfirmed reports of a seven-day timeline, then rebounding to $96.78 as no agreement materialized and tanker traffic remained disrupted. The market is pricing a persistent risk premium, with the physical diesel market still tight, indicating that normalization is far from assured. The key uncertainty is whether Iran will follow through on reopening the strait and how quickly shipping and supply chains can recover.