WTI refreshes three-week high near $86 amid US-Iran deadlock
- The Oil price posts a fresh three-week high near $86.00
- US President Trump warns of severe consequences for nations supporting Iran.
- Qatar sees Iran-Oman deal as precursor to US-Iran talks.
West Texas Intermediate (WTI), futures on NYMEX, trades 2% higher at around $86.00 during the European trading session on Thursday, the highest level seen in over three weeks. The oil price gains further as the global energy supply remains squeezed due to the closure of the Strait of Hormuz and the Bab el-Mandeb Strait, which collectively account for 27% of global energy supply.
The oil supply seems unlikely to normalize anytime soon, as United States (US) President Donald Trump has warned of severe consequences, through a post, for nations if seen supporting Iran’s economic activities.
“ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences. Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies — It all needs to stop NOW. You know who you are,” US President Trump wrote.
The efforts by the US to isolate Iran for not making a deal with Washington have prompted fears of prolonged Hormuz closure.
Meanwhile, Qatar believes that the Iran-Oman deal on Hormuz management is a priority before the return of the US and Iran to the table.
On Tuesday, Qatar’s Foreign Ministry spokesperson, Majed Al-Ansari, said, “Iran-Oman discussions have become a key step toward restarting the wider diplomatic process.”
Oil Technical Analysis
In the daily chart, WTI US Oil trades at $86.12. The contract holds a bullish near-term bias as price extends well above the 20-day Exponential Moving Average (EMA) at $81.65, reinforcing a constructive trend structure. Momentum conditions are supportive rather than extreme, with the 14-day Relative Strength Index (RSI) at 59.24, hinting that buying pressure is firm but not yet overbought.
On the downside, immediate support is seen at the recent price pivot near $86.12, with stronger underlying demand emerging at the 20-day EMA around $81.65, which anchors the latest advance. As long as WTI remains above this moving average, pullbacks are likely to be treated as corrective within the broader uptrend rather than signaling a deeper reversal.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
