Geopolitical risks and a technical bounce lift oil prices as Iran denies US talks and drone attacks heighten supply concerns.
West Texas Intermediate crude oil advances toward $80.00, extending gains from a rebound near $77.00 in early Asian trading. Escalating US-Iran tensions, including denied negotiations and drone strikes on a US base in Kuwait, drive concerns over energy supply disruptions.
The commodity found support above $76.60, a key level aligning with the 50% Fibonacci retracement of July’s rally and the 200-period SMA on the 4-hour chart. However, mixed technical signals—including a negative MACD and RSI near 45—suggest limited upward momentum for now.
Resistance is seen at $82.64, the 38.2% Fibonacci retracement, with further upside dependent on geopolitical developments and market sentiment.