WTI crude climbed about 1% toward $69.40 on Tuesday after reports that Iran struck commercial vessels in the Strait of Hormuz. The rebound came against a firmly bearish technical backdrop, with prices well below the 20-day EMA and the RSI near oversold territory.
Reports of attacks on shipping in the Strait of Hormuz pushed WTI crude oil higher on Tuesday, lifting NYMEX futures about 1% to near $69.40 during the European session. The strait carries nearly one-fifth of global energy flows, so the incident revived concern about supply disruptions.
Strait of Hormuz attacks lift crude
Iran launched at least two missiles at commercial ships crossing the strait, according to a report from Axios. Bloomberg reported that two vessels were struck and sustained significant damage, though no casualties were recorded.
The broader market impact is expected to stay limited for now. The United States has not issued any formal response to the incident, which suggests the existing ceasefire with Iran remains in place.
Trump threat adds to tension
US President Donald Trump threatened on Monday to attack Iranian infrastructure if a deal is not concluded soon, adding uncertainty to the backdrop for oil markets. In response, Iran's Foreign Minister Abbas Araghchi warned that talks would not begin while threats persist.
Fundamentals still weigh on prices. An announced increase in output by OPEC+ has added to global supply, contributing to a bearish backdrop for crude.
Bearish technical structure holds
Despite the intraday gain, WTI still reflects a bearish short-term bias. Spot prices trade well below the 20-day EMA at $74.27, a gap that signals sellers remain in control. The Relative Strength Index stands at 31.79, just above oversold conditions.
On the upside, the first resistance sits at $70.00, with the 20-day EMA near $74.27 the next barrier above it. On the downside, a break below the July 2 low at $67.09 would likely open the way toward the February 26 low at $63.58.
Source: TradingPedia
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