WTI Crude Oil jumps towards $100 amid fresh supply concerns

The barrel of West Texas Intermediate trades just below the $100 level as Iran war intensifies.
Concerns revolve around who seizes control of the Strait of Hormuz, the main Middle East passage to the sea.
US Energy Secretary Chris Wright said that he expects the Iran war to end within next few weeks.

FXStreet Team FXStreet

Crude Oil Prices are roughly 3% up at the weekly opening, with the barrel of West Texas Intermediate (WTI) crude hovering around $99. The Iran war escalated over the weekend, after the United States (US) launched an attack on Iran’s main oil hub on Kharg Island, as nearly 90% of Iranian oil exports are shipped from it. Tehran's response was massive, striking various neighbouring countries and claiming the US presence in the area.

Concerns revolve around controlling the Strait of Hormuz, the main passage for Middle East oil producers to the sea. US President Donald Trump called for allied countries to help him protect the Strait, and there are reports hinting at a White House announcement on the matter in the upcoming days.

Additionally, US Energy Secretary Chris Wright said that he expects the Iran war to end within “the next few weeks,” with oil supplies rebounding and energy costs declining afterwards, the Guardian reported on Sunday.

Nevertheless, oil supply disruptions are not only continuing, but are meant to worsen, leading to higher crude oil prices.

WTI short-term technical outlook

In the 4-hour chart, WTI US OIL trades at $98.89, and the near-term bias is bullish as price holds a clear premium over the 20-, 100- and 200-period Simple Moving Averages (SMAs), with the short-term SMA near $91.55 rising above the medium- and long-term averages around $77.45 and $70.54, respectively. Meanwhile, the Momentum indicator advances further above its midline, signaling strengthening upside pressure after a prior consolidation. Finally, the Relative Strength Index (RSI) indicator aims north at 62, suggesting buyers retain control with room to extend the move.

Initial support emerges at the 20-period SMA around $91.55, guarding the latest impulse leg, with additional layers at the 100-period SMA near $77.45 and the 200-period SMA around $70.54 if a deeper correction unfolds. As long as price holds above the $91.55 zone, bulls would be positioned to challenge the recent swing area just shy of the psychological $100 mark, with a sustained break higher opening the way toward recent highs around $120.

(The technical analysis of this story was written with the help of an AI tool.)

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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