West Texas Intermediate (WTI) Crude Oil trims part of its intraday gains on Wednesday as traders assess geopolitical developments surrounding the US-Iran conflict. At the time of writing, WTI trades near $74.32 after briefly reaching a one-year high of $77.20 on Tuesday.
The pullback comes after a New York Times report suggested that Iranian operatives had signalled openness to discussing terms to end the war. However, crude prices remain elevated, up nearly 10% this week, amid ongoing disruptions to Oil flows through the Strait of Hormuz.
US President Donald Trump tried to calm markets, saying the US “will begin escorting tankers through the Strait of Hormuz as soon as possible” if necessary. In a post on Truth Social on Tuesday, Trump added that Washington would provide political risk insurance for ships traveling through the Gulf to “ensure the FREE FLOW of ENERGY to the WORLD.”
Meanwhile, the Energy Information Administration (EIA) reported that US crude inventories rose by 3.475 million barrels last week, above expectations of 2.2 million barrels, though the increase was far smaller than the previous 15.989 million-barrel build. The report had little impact on prices as markets continued to focus on supply disruptions in the Middle East.
From a technical perspective, the daily chart shows WTI maintaining a steady uptrend, marked by a sequence of higher highs and higher lows since bottoming at $54.88 on December 16.
The Relative Strength Index (RSI) is hovering near 77, pointing to overbought conditions while still reflecting strong buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) line remains above the signal line and firmly in positive territory, with the histogram continuing to expand.
On the upside, immediate resistance is seen at Tuesday’s peak near $77.20. A break above this level could bring the $79.00-$80.00 resistance zone, marked by the January 15, 2025, high near $79.37. A sustained move above this zone may open the door for a further extension toward the $85.00 handle.
On the downside, initial support emerges in the $69.00-$70.00 zone. A break below this area could expose the 21-day SMA near $65.86, followed by the 50-day SMA around $62.30.
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