WTI rises to near $84.50 as IRGC claims supertanker struck by mines in Hormuz
- WTI jumps after Iran claims a supertanker hit naval mines in the Strait of Hormuz.
- Iran launched missile barrages toward the Strait to avenge a recent US strike on Larak Island.
- The US struck Iranian mine-laying positions, breaking a month-long pause in direct military action.
West Texas Intermediate (WTI) rebounds and continues its intraday gains, trading around $84.40 per barrel during the Asian hours on Monday. Crude oil prices spike following claims by Iran's Islamic Revolutionary Guard Corps (IRGC) that a rogue supertanker caught fire in the Strait of Hormuz after hitting two naval mines along the waterway's southern passage.
IRGC officials stated the vessel was attempting to pass through the strait illegally, adding a stern warning that all maritime traffic must strictly comply with Iranian rules for passage through the area.
In a sharp escalation, Iran launched a coordinated barrage of ballistic and anti-ship cruise missiles from multiple locations across the country, including Tehran, Lorestan, Karaj, Khorramabad, and Shiraz. Targeted toward positions in the Strait of Hormuz, the missile strikes were launched in direct response to an earlier United States strike on Iranian launcher facilities at Larak Island, which the IRGC vowed to avenge.
The preceding US military action targeted Iranian rocket sites prepared to lay naval mines in the strategic waterway, marking the first direct strike on Iranian military positions in over a month. While US forces maintained close monitoring of the Strait to safeguard global trade routes, the strike represented a sudden shift from Washington's recent baseline strategy, which had largely relied on economic sanctions over direct force to push Tehran back to negotiations.
Brent gains seen capped as Persian Gulf exports recover
Brown Brothers Harriman cautions that, despite recent strength in Brent, “upside pressure on crude oil prices appears limited.” The firm points to Goldman Sachs estimates that “oil exports from the Persian Gulf have recovered to around two-thirds of pre-war levels as more vessels transit the Strait of Hormuz,” suggesting that improving regional supply dynamics are likely to temper further gains.
Technical Analysis:
In the daily chart, WTI US Oil trades at $84.40, maintaining a constructive bullish bias as price holds above both the short-term nine-period Exponential Moving Average (EMA) and the medium-term 50-period EMA. The alignment of price above these averages suggests a supportive trend structure, while the 14-day Relative Strength Index (RSI) at 55.13 stays in neutral-to-positive territory, hinting at steady upward momentum rather than overbought conditions.
On the downside, immediate support is seen at the nine-period EMA around $83.19 and the 50-period EMA near $81.82. As long as WTI holds above these clustered supports, pullbacks are likely to be treated as corrective pauses within the broader advance, leaving the path open for buyers to press the uptrend toward higher levels once fresh resistance is defined by future price action.
(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
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
