West Texas Intermediate (WTI), futures on NYMEX, is 2.6% higher to near $98.00 during the European trading session on Tuesday.
The oil price gains sharply amid growing doubts that the temporary ceasefire between the United States (US) and Iran, announced in early April, would last long
Tensions between the US and Iran have renewed as US President Donald Trump stated, on Monday, that Iran’s proposal was “stupid”, adding, “Ceasefire is on life support.” The renewed uncertainty over the US-Iran permanent resolution has prompted fears of a prolonged closure of the Strait of Hormuz, a vital passage to almost 20% of global energy supply. Meanwhile, investors await the US Consumer Price Index (CPI) data for April, which will be published at 12:30 GMT. Investors will pay close attention to the US inflation to get fresh cues on the Federal Reserve’s (Fed) interest rate outlook.
The US CPI report is expected to show that the headline inflation rose to 3.7% Year-on-Year (YoY) from 3.3% in March. WTI technical analysis WTI US Oil trades higher at around $98.00, maintaining a constructive near-term bias as it holds above the 20-day Exponential Moving Average (EMA) at roughly $95.54. The price location above this dynamic support suggests that dips remain supported, while the Relative Strength Index (RSI) around 54 keeps a modestly positive tone without yet venturing into overbought territory.