Geopolitical risks and supply concerns push West Texas Intermediate to a four-day high, with traders eyeing a break above $78.00.
West Texas Intermediate (WTI) crude oil prices rose to a four-day high during Asian trading, driven by escalating tensions between the U.S. and Iran over the Strait of Hormuz. Bulls await a sustained move above $78.00 before committing to further gains, as Iran nears an agreement with Oman on a safe shipping route but demands sanctions relief and compensation for reopening the waterway.
Technical indicators show modest bullish momentum, with WTI holding above the 200-period Simple Moving Average at $76.80 and the 61.8% Fibonacci retracement level of $76.42. The Relative Strength Index (RSI) sits near 54, while the MACD remains positive, signaling potential upside. Resistance levels are seen at $79.43, $82.43, and $86.15.
Recent attacks by Iran-backed Houthi militants on Saudi Arabia’s Jazan refinery have kept geopolitical risks elevated, supporting crude prices. Market participants remain cautious as negotiations continue, with supply disruptions still a key concern.