West Texas Intermediate (WTI) Oil prices climbed on Monday, reaching approximately $91.15 per barrel, the highest level since July 24, as renewed geopolitical tensions in the Middle East heightened supply concerns [1]. The increase follows fresh attacks over the weekend involving the United States and Iran. According to US Central Command, American forces struck three Iranian vessels, including one near Kharg Island, another near Jask, and an empty tanker in the Gulf of Oman, in response to earlier Iranian missile attacks on US Navy warships [1]. Iranian state media reported that its forces targeted an unmanned US vessel, a claim denied by US Central Command. Iran also stated it struck three commercial oil tankers on routes it considers unauthorized [1].
Further escalating supply risks, Al Jazeera cited Iran’s top security official, Mohsen Rezaei, who announced Tehran’s intention to declare a restricted zone near the Strait of Hormuz and introduce a new shipping route with Oman in the coming days [1]. Additionally, the Financial Times reported a strike on Saudi Aramco’s Jazan Oil refinery, which processes around 400,000 barrels of crude per day. The extent of the damage is still being assessed, and Aramco has not commented publicly [1].
OPEC+ maintained its oil output policy unchanged for October at its Sunday meeting, opting not to increase supply. This decision, combined with ongoing threats of further retaliation between the United States and Iran, is expected to keep oil prices sensitive to any disruptions in the region [1].
From a technical perspective, WTI Oil retains a bullish bias, trading well above both the 100-day and 200-day Simple Moving Averages (SMA). The price is also above the Bollinger Bands’ 20-day SMA at $84, with momentum indicators such as the Relative Strength Index (RSI) near 65 and a positive Moving Average Convergence Divergence (MACD) suggesting continued upside pressure, though the market may be approaching overextended territory [1]. Key resistance is at the Bollinger upper band around $91, while support levels are identified at the 100-day SMA ($85), the Bollinger mid-line ($84), and the 200-day SMA near $78 [1].
CONCLUSION
WTI Oil prices surged to their highest since July, driven by escalating Middle East tensions and fresh supply risks, including attacks involving the US, Iran, and a strike on a major Saudi refinery. With OPEC+ keeping output steady and technical indicators signaling bullish momentum, the market remains highly sensitive to further disruptions in the region.