Oil prices recover slightly as traders await clarity on a potential US-Iran agreement, though technical indicators signal near-term downside risks.
West Texas Intermediate (WTI) crude oil erased some losses, trading near $83.80 per barrel after hitting an intraday low of $81.80, its weakest since April 17. The rebound follows speculation of a US-Iran deal that could reopen the Strait of Hormuz, easing supply concerns, though details remain uncertain.
Prices remain under pressure, trading below critical moving averages clustered between $85 and $94. The Relative Strength Index (RSI) points lower, reinforcing a bearish technical outlook. Prior sessions saw heavy selling after reports of a potential peace agreement, though geopolitical risks persist.
Markets are cautious as traders await confirmation of the deal’s terms, particularly regarding the future management of the Strait of Hormuz. Iran’s state media indicated the waterway’s administration would be resolved regionally, not through US control.