WTI slides below $84.00 on firmer USD but US-Iran tensions limit deeper losses
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts fresh sellers following an intraday uptick to the $85.35 region and turns lower for the second straight day. The commodity slides below $84.00 during the early European session, though the downside potential seems limited.
WTI, the benchmark US Crude Oil price, dips below $84.00 amid a stronger US Dollar, though the decline is not expected to be severe. The risk of escalating US-Iran tensions may help curb deeper losses. Treasury Secretary Scott Bessent warns countries against financial ties with Iran or facing exclusion from the dollar-based financial system.
Iran has vowed to halt oil exports from the Gulf if the economic war persists. US Defense Secretary Pete Hegseth mentions the possibility of using military force against Iran, reinforcing the geopolitical risk premium. WTI remains near-term bullish above the 100-period Exponential Moving Average support at $82.61. The technical analysis, aided by an AI tool, notes a potential recovery toward recent cycle highs if the $82.00 handle holds.
Supply and demand are the main drivers of WTI Oil prices, with global growth, political instability, and OPEC decisions also playing significant roles. The US Treasury has doubled the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors.
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