Traders Protect Against Selloff Even as Oil Climbs Above $110

Even as Wall Street calls for oil to hold above $100, stockpiles shrivel and the Strait of Hormuz remains all but shut, some traders are buying options to protect against an abrupt deescalation between the US and Iran.

Banks including Citigroup Inc. and Morgan Stanley have raised their price forecasts to reflect a longer Hormuz closure after peace talks between the US and Iran failed to materialize, while Goldman Sachs Group Inc. sees output being curtailed by about 14.5 million barrels a day in April.