WTI Oil drops sharply after Bessent signals an imminent Iran deal

West Texas Intermediate (WTI) US Oil is falling sharply on Tuesday, trading around $75.70 per barrel at the time of writing, down 3.91% on the day and at its lowest level in the last three weeks. Oil prices remain under pressure after a series of statements raised hopes of a de-escalation in tensions between the United States (US) and Iran, potentially leading to the reopening of the Strait of Hormuz.

US Treasury Secretary Scott Bessent said in an interview with CNBC that talks with Iran are ongoing and that a deal could be reached as soon as Tuesday or Wednesday to reopen the Strait of Hormuz and move toward a normalization of the conflict. He added that, if an agreement is reached, he expects energy prices to "settle back down."

Meanwhile, Qatar's Foreign Ministry spokesperson, Majed Al Ansari, confirmed that diplomatic efforts between the United States and Iran are continuing in an attempt to reach a negotiated solution. He stressed that returning to the negotiating table remains the immediate priority and added that Qatar, Pakistan and Oman are closely coordinating efforts to facilitate negotiations and the exchange of proposals between both sides.

Separately, a senior official cited by Al Arabiya said that an announcement on the reopening of the Strait of Hormuz could be made shortly, although no official confirmation has yet been released.

The improving geopolitical outlook is easing concerns over potential disruptions to global Oil supplies, triggering a sharp decline in crude prices.

WTI US Oil technical analysis

In the one-hour chart, WTI US Oil trades around $75.72, extending a sharp pullback below the recent $79-$80 area and keeping a bearish near-term bias in place. Price sits well under the 100-period simple moving average (SMA) at $81.03 and the 200-period SMA at $82.91, reinforcing a downside tone, while the downtrend resistance line near $82.94 remains a distant cap. The Relative Strength Index (RSI) around 35 is edging toward oversold territory, suggesting that while selling pressure persists, scope for a corrective bounce cannot be ruled out.

On the topside, initial resistance is seen at the horizontal barrier near $77.40, a previously support level, with stronger supply clustered around the 100-period SMA at $81.03 and the 200-period SMA at $82.91, ahead of the trend-line level at $82.94, while the downside bias is likely to persist as long as WTI remains capped beneath the $77.40 area.

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