WTI crude oil fell more than 7% on 27 July 2026 after the United States suspended its strikes against Iran, breaking the ascending trendline that had carried the contract higher since the start of July. Price now sits between the point of control at $84.7 and the lower profile boundary at $82.7, and the drop arrived on relatively modest volume.
WTI crude oil plunged by more than 7% on 27 July 2026 after the US suspended a series of strikes against Iran over the weekend, according to CNBC. The pause raised hopes of a diplomatic solution and the reopening of shipping through the Strait of Hormuz. Brent crude also fell below $90 per barrel.
Houthi attacks keep supply risk on the table
Yet the conflict remains far from resolved. Bloomberg reported that Yemen's Houthi movement had claimed attacks on Saudi Aramco facilities in Jizan and Yanbu. Goldman Sachs has also flagged that if Strait of Hormuz disruptions persist into 2027, Brent could top $120 in Q4 and average near $100 next year.
The gap broke July's ascending trendline
Before the gap, XTIUSD had been building a short-term uptrend since the start of July. A rebound from the $68 area on 2 July grew into a sustained rally. An ascending trendline supported that advance.
That line held until the market peaked near $94.2, but it broke on 27 July after the sharp gap lower. Price is now working through two key levels inside the current market profile: the point of control at $84.7 and the lower profile boundary at $82.7. If that area fails to hold and the decline continues, the green support level at $80.5 could become increasingly important.
Low volume leaves room for buyers to return
Above current levels lies the upper boundary of the market profile at $90.3, which could become the next upside target if the market reverses. Beyond that, traders will be watching the red resistance level at $94.2. The RSI + MAs indicator reads 36, 55 and 60, suggesting the market remains unbalanced and is still searching for equilibrium.
Notably, the gap occurred on relatively modest trading volume considering the scale of the price move. Oil prices stay confined to a narrow range between the point of control and the lower boundary of the market profile, where momentum for the next significant move may be building. That low volume suggests the sell-off may have been driven largely by emotion, leaving room for buyers to return if the geopolitical risk premium begins to rebuild.
Sources: ActionForex, Crypto Daily
Trading involves risk.
Risk Disclaimer
