West Texas Intermediate (WTI) futures on NYMEX declined by 0.8% to approximately $96.60 in early European trading on Wednesday, extending a correction from the three-week high of $103.33 reached on Tuesday. The pullback is attributed to growing optimism for a ceasefire in the Middle East, following statements from both the United States and Iran expressing readiness to end the ongoing conflict. Iranian President Masoud Pezeshkian, in a conversation with European Union Council President António Costa, indicated Iran's willingness to end the war with the US, contingent on guarantees against repeated aggression. This marks the first instance of Iran discussing peace in the region and refraining from further attacks on Gulf nations [1].
Despite the retracement, analysts suggest the dip may be temporary, as the strategic Strait of Hormuz—responsible for nearly 20% of global energy supply—remains under Iran's military influence. The United Arab Emirates (UAE) has signaled its intention to join the US and other allies in efforts to forcefully reopen the Strait, according to a report by the Wall Street Journal [1].
From a technical perspective, WTI maintains a bullish near-term bias, trading well above the rising 20-day Exponential Moving Average (EMA) at $90.70. Recent declines toward the low $90s have attracted buyers, preserving a pattern of higher lows and sustaining the advance from $84. The Relative Strength Index (RSI) at 61 indicates firm positive momentum, suggesting buyers remain in control despite the recent pullback from the $101.97 peak. Resistance is noted at $100.00 and the recent high of $103.41, with a sustained break above these levels potentially opening the way toward the mid-$100s. Immediate support is seen at $93.00–$94.00, with deeper setbacks exposing the 20-day EMA at $90.70. A daily close below this area would weaken the bullish bias and signal a broader corrective phase toward the high-$80s [1].
CONCLUSION
WTI oil prices have retreated from recent highs amid hopes for a Middle East ceasefire, but technical indicators suggest bullish momentum remains intact. The ongoing geopolitical uncertainty surrounding the Strait of Hormuz and potential actions by regional players could continue to influence oil prices. Market participants are closely watching for further developments, as a sustained break above resistance levels may extend the current rally.