West Texas Intermediate (WTI), the benchmark US crude oil price, surged during the Asian session on Tuesday, trading just below the mid-$105.00s and marking a climb of over 1.5% for the day. This move brings WTI close to a nearly four-week high set the previous day, as traders react to US President Donald Trump's looming deadline for Iran to reopen the Strait of Hormuz, set for Tuesday at 8 PM Eastern Time (00:00 GMT Wednesday) [1].
President Trump intensified his rhetoric against Iran, threatening to target civilian infrastructure if the deadline passes without a deal. Iran has rejected a ceasefire proposal and insists on a permanent end to the conflict, raising the risk of further escalation in the Middle East. This geopolitical tension has provided a tailwind for crude oil prices, with market participants closely watching developments for potential supply disruptions [1].
From a technical perspective, WTI maintains a bullish near-term bias, trading above the rising 100-period Exponential Moving Average (EMA) and confirming an established uptrend following last week’s rebound from the mid-$90s. The Moving Average Convergence Divergence (MACD) indicator remains in positive territory, with steady upside momentum indicated by an expanded histogram. The Relative Strength Index (RSI) is near 64, below overbought levels, suggesting buyers are in control with no immediate signs of exhaustion [1].
Immediate resistance is identified at $105.70, the recent peak, and a clear move above this level would reinforce the bullish structure, potentially opening the way toward $107.00. On the downside, initial support is at $103.50, with a stronger floor at $101.50. A break below $103.50 could expose deeper downside levels at $101.50 and $99.50, within the prevailing uptrend [1].
CONCLUSION
WTI crude oil prices are rallying on heightened geopolitical tensions and the imminent US deadline for Iran, with technical indicators supporting a bullish outlook. The market is closely watching for further escalation, which could drive prices higher. Traders should monitor resistance and support levels as volatility is expected to remain elevated.