WTI Price Forecast: Slips below $83.00, fresh low since late August amid Iran peace hopes

West Texas Intermediate (WTI) crude oil prices have dropped below $83.00, marking a fresh low since late August, amid increasing hopes of a US-Iran peace deal. On Tuesday, the benchmark US crude oil price experienced heavy selling, falling to its lowest level since late August during the first half of the European session. The optimism surrounding a potential diplomatic resolution to the US-Iran war, as reported by US President Donald Trump, is believed to be weighing on crude oil prices.

However, the possibility of a deeper pullback remains as Iran's Supreme National Security Council dismisses reports of active negotiations, insisting that Washington must accept Tehran's seven conditions to end the conflict. Technical indicators, including the Relative Strength Index and Moving Average Convergence Divergence, suggest that sellers still control the market.

The next relevant support level is the 61.8% retracement at $81.11, with further cushions at the 78.6% level and the prior swing low zone. On the upside, the initial barrier is at the 50% retracement, near $85.48, followed by the 200-day Simple Moving Average at $86.31.