WTI Oil climbs above $82 as Washington-Tehran standoff reignites supply concerns
West Texas Intermediate (WTI) US Oil advances on Monday and trades around $82.10 at the time of writing, up 0.68% on the day. Oil prices remain supported by the deadlock between the United States (US) and Iran, which keeps concerns about Oil flows through the Strait of Hormuz elevated.
WTI Oil price surged above $82 on Monday, climbing to $82.10, marking a 0.68% increase for the day. The upward movement in oil prices is attributed to ongoing tensions between the United States and Iran, which has heightened concerns about oil flow through the Strait of Hormuz. The deadlock between Washington and Tehran has left the reopening of the strategic waterway uncertain, as talks between the two nations seem to have stalled.
Iranian Foreign Minister Abbas Araghchi confirmed that no negotiations are underway and emphasized that the US must accept Iran's conditions for resuming shipping through the Hormuz Strait. The situation escalated further over the weekend when Iranian Deputy Foreign Minister Kazem Gharibabadi urged US President Donald Trump to "accept the reality of defeat," following Trump's declaration that he would soon declare the Strait of Hormuz a "territory of the United States."
This rhetoric dampens the prospects of a swift de-escalation and maintains a geopolitical risk premium in oil prices. The oil market is also closely monitoring developments in Lebanon, where renewed fighting between Israel and Iran-backed Hezbollah could further tighten concerns over Middle Eastern energy stability and support WTI prices.
Supply risks extend beyond the Middle East, with Russia grappling with fuel shortages following Ukraine's recent attacks on Russian oil refineries. As traders focus on the American Petroleum Institute's weekly US Crude Oil inventory report due on Tuesday, the current WTI price shows a supportive bias, trading above significant moving averages ($81.53 on the 100-period SMA and $79.22 on the 200-period SMA).
The Relative Strength Index (RSI) of 57 indicates positive momentum, but not overextended, allowing room for further gains if intraday pullbacks remain contained. On the upside, resistance levels are identified at $82.28, $83.57, and $84.60, while on the downside, support is found at the 100-period SMA at $81.53, followed by a crucial floor around $80.00, where a deeper drop may expose the 200-period SMA at $79.22.
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