WTI extends its rebound on Wednesday as rising tensions in the Middle East disrupt Oil flows through the Strait of Hormuz and the Red Sea.
At the time of writing, WTI trades around $86.20 after reaching an intraday high of $87.83, its highest level since June 11
The US military carried out an eleventh consecutive night of strikes against Iran, while Tehran responded with fresh attacks targeting Bahrain, Kuwait and Jordan. Meanwhile, three tankers carrying Saudi crude reportedly reversed course in the Red Sea following threats from the Iran-backed Houthis. From a technical perspective, WTI staged a sharp recovery after retesting the pre-war level near $67 earlier this month.
The price then reclaimed the 200-day Simple Moving Average (SMA) around $74 and is now testing the 100-day SMA near $88. Momentum continues to favor the upside. The Relative Strength Index (RSI 14) has climbed to 66.61, approaching overbought territory, while the Moving Average Convergence Divergence (MACD) remains in positive territory, with the MACD line above the signal line and a widening positive histogram, hinting at persistent upside pressure.