West Texas Intermediate (WTI) crude oil futures on NYMEX traded flat near $86.00 during the European session on Friday, remaining close to the recent three-week high of $87.38 reached the previous day [1]. The firmness in oil prices is attributed to ongoing global energy supply constraints, primarily due to the closure of the Strait of Hormuz and the Bab el-Mandeb Strait, which together account for 27% of the world's energy supply [1].
The article notes that there are currently no efforts from either the United States or Iran to resume talks regarding the reopening of the Strait of Hormuz, suggesting that energy prices are unlikely to retreat in the near term [1]. Geopolitical tensions remain elevated, with President Donald Trump warning of isolating Iran from the global financial system and threatening severe economic consequences for nations supporting Iran [1]. Danske Bank analysts highlight that recent US rhetoric on Iran has intensified, with Treasury Secretary Scott Bessent stating the US intends to impose the "toughest sanctions in history" [1]. Bessent also suggested that a stronger sanctions push could reduce the likelihood of renewed large-scale military escalation, and argued that oil markets may be overstating the risk of further geopolitical flare-ups [1].
From a technical perspective, WTI trades at $85.74, maintaining a bullish near-term bias as the price remains above the 20-day exponential moving average (EMA) at $82.03 [1]. The Relative Strength Index (RSI) at 58.54 indicates positive momentum without signaling overbought conditions, implying that the recent price advance could continue [1]. Immediate support is seen at the 20-day EMA ($82.03), and as long as WTI holds above this level, the technical outlook favors further consolidation with an upside bias. A clear daily close below this support would weaken the current constructive structure [1]. On the upside, WTI is expected to extend its advance toward the two-month high at $92.25 [1].
CONCLUSION
WTI oil prices remain supported by ongoing supply disruptions and heightened geopolitical tensions, with technical indicators suggesting further upside potential. Market participants are closely watching developments in US-Iran relations and the status of key energy chokepoints, as these factors continue to drive oil price dynamics.