WTI Crude Surges Toward $80.00 Amid Escalating Geopolitical Tensions in the Strait of Hormuz

West Texas Intermediate (WTI), the benchmark for US crude oil, has extended its upward momentum for a second consecutive day. During the Asian trading session, prices approached the $80.00 per barrel threshold, reaching a nearly one-month high driven by mounting supply risks following intensified US-Iran tensions.

The market’s bullish sentiment is fueled by recent military actions, including a series of US strikes against Iranian targets following the reimposition of a naval blockade by the US administration. In retaliation, the Islamic Revolutionary Guard Corps (IRGC) targeted US-held facilities, and two UAE-flagged tankers were struck by Iranian cruise missiles within the Strait of Hormuz. These geopolitical risks have triggered a risk premium in the market, supporting a broader recovery from the lows seen in late February.

From a technical standpoint, several indicators suggest a bullish trend. The price has broken through the 23.6% Fibonacci retracement level of the April-July decline and surpassed the 200-day Exponential Moving Average (EMA), serving as a critical signal for buyers. Furthermore, the Moving Average Convergence Divergence (MACD) has entered positive territory, and the Relative Strength Index (RSI) stands at 55.10, indicating healthy momentum without being technically overbought.

Looking ahead, immediate resistance is expected at the $82.20 level (38.2% Fibonacci retracement), with further hurdles at $86.88 (50%) and $91.55 (61.8%). Traders may remain cautious ahead of upcoming US inflation data and testimony from Federal Reserve Chair Kevin Warsh. On the downside, initial support is established near the 200-day EMA at $77.24, with deeper support levels located at $76.41 and a long-term structural floor near $67.06.

WTI daily chart

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