West Texas Intermediate (WTI), the benchmark US Crude Oil price, began the week on a strong note, trading above the mid-$90.00s during the Asian session and approaching its highest level since July 24, which was reached last Thursday [1]. The positive momentum is attributed to escalating confrontations between the US and Iran in the Strait of Hormuz, a critical shipping route. Over the weekend, US forces struck three Iranian oil tankers, prompting Iran's Islamic Revolutionary Guard Corps to retaliate by targeting six vessels [1]. These tit-for-tat attacks have heightened concerns about the security of oil shipments through the region and raised fears of a prolonged disruption to supply, reinforcing the near-term bullish outlook for crude oil prices [1].
From a technical perspective, WTI maintains a bullish bias as it trades above the 100-day Simple Moving Average (SMA) at approximately $85.21 and the 50% Fibonacci retracement of the April-July decline [1]. Momentum indicators further support this stance, with the Relative Strength Index (14) near 64 and the MACD histogram expanding in positive territory, indicating that buyers retain control in the near term [1]. Immediate resistance is noted at the 61.8% Fibonacci retracement level near $91.73, with additional barriers at the 78.6% level around $98.48 and the recent swing high zone near $107.07 [1]. On the downside, initial support is reinforced by the 50% retracement at $86.99 and the 100-day SMA, ahead of a deeper Fibonacci floor near $82.26 [1]. As long as oil prices remain above this support band, any pullbacks are likely to be viewed as corrective within the prevailing uptrend [1].
No forward-looking statements or analyst opinions beyond technical analysis were provided in the article [1].
CONCLUSION
WTI crude oil prices are experiencing strong upward momentum, driven by escalating US-Iran tensions and concerns over supply disruptions in the Strait of Hormuz. Technical indicators suggest buyers remain in control, with resistance and support levels clearly defined. The market is likely to view any price pullbacks as temporary corrections within a broader bullish trend.