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West Texas Intermediate (WTI) crude oil has surged nearly 32% to around $101, nearing its $102.25 resistance level, driven by escalating tensions between the US and Iran over the Strait of Hormuz. The ongoing 17-day conflict has heightened fears of supply disruptions in a critical global oil transit chokepoint. Technical analysis suggests a potential short-term pullback toward $88.36, though the medium-term bullish trend remains intact due to persistent geopolitical risks and constrained supply. For traders, the $102.25 level acts as a key psychological and technical barrier. A break above this could trigger further gains, while a drop below $88.36 might signal a broader correction. The situation underscores the sensitivity of energy markets to geopolitical events, with WTI serving as a bellwether for global oil prices. Positioning around these levels could attract both speculative and hedging activities. Investors should monitor developments in the US-Iran standoff and OPEC+ production decisions, which could amplify volatility. For Gulf markets, any prolonged disruption in Hormuz would directly impact regional energy exports and inflation. Key indicators to watch include weekly EIA reports and geopolitical risk indices.
