West Texas Intermediate (WTI) crude oil futures on NYMEX recovered early losses and traded flat around $89.60 during the European session on Wednesday, as market participants reacted to ongoing uncertainty regarding the Strait of Hormuz, a critical passage for nearly 20% of global energy supply, which remains under Iranian control and is currently closed to oil flows due to military dominance by Iran [1]. The suspension of oil flows is expected to persist until Tehran agrees to resume peace talks with the United States; however, Iran has maintained its position that it will not engage in further negotiations as long as the US blockade of Iranian sea ports continues [1].
In a related development, US President Donald Trump announced late Tuesday via Truth Social an extension of the two-week ceasefire, which was set to expire on April 22, and instructed the military to refrain from attacking Iran until Washington receives a unified proposal from Tehran. As of the time of reporting, Tehran has not officially responded to the ceasefire extension [1].
From a technical perspective, WTI oil prices are exhibiting a neutral near-term tone, remaining close to the 20-day Exponential Moving Average (EMA) at $90.45. The Relative Strength Index (14) is fluctuating within the 40.00-60.00 range, indicating a sideways trend. Key resistance is identified at the 20-day EMA ($90.45), with a daily close above this level potentially opening the way toward the downward-sloping trend line near $100.84. On the downside, immediate support is at the two-day low of $85.17, with a further breakdown exposing the April 17 low at $78.88 [1].
The market remains cautious as geopolitical tensions and the unresolved status of the Strait of Hormuz continue to influence oil prices, with traders closely monitoring developments between the US and Iran for further direction [1].
CONCLUSION
WTI oil prices are currently stable but remain sensitive to geopolitical developments in the Strait of Hormuz and US-Iran relations. The market is adopting a wait-and-see approach, with technical levels providing key reference points for potential price movements. Any resolution or escalation in the situation could significantly impact oil prices in the near term.