West Texas Intermediate (WTI) futures on NYMEX rose by 2% to nearly $90.00 during the European trading session on Tuesday, rebounding after a previous decline. The price increase was attributed to Iran's refusal to engage in direct talks with the United States regarding the resolution of ongoing conflicts in the Middle East, which has heightened geopolitical uncertainty and supported oil prices [1].
The previous day's drop followed US President Donald Trump's announcement that he had instructed the Department of War to pause military attacks on Iran's power plants for five days, citing 'very good and productive conversations' with Tehran about a complete resolution of hostilities. Trump also stated that Iran is eager to make a deal, suggesting that an agreement could be reached within five days or sooner [1].
Market experts anticipate continued strength in oil prices, noting that damage to energy infrastructure in Gulf countries is unlikely to be repaired soon. Analysts at Capital Economics commented, 'The war has resulted in lasting damage to infrastructure, so even if it's over soon, energy prices may well remain higher' [1].
From a technical perspective, WTI trades near $89.24, maintaining a bullish bias above the rising 20-day Exponential Moving Average (EMA) at $86. The 14-day Relative Strength Index (RSI) at 58 indicates positive momentum without overbought conditions. Resistance is identified at the recent high of $99, with a daily close above this level potentially opening the path toward $100. Immediate support is at the 20-day EMA near $86, and a break below could expose further downside toward $82 [1].
CONCLUSION
WTI oil prices have rebounded sharply, driven by ongoing Middle East tensions and persistent infrastructure damage. Market sentiment remains bullish, with analysts expecting elevated prices even if hostilities end soon. Technical indicators suggest buyers retain control, with resistance and support levels closely watched for further price action.