West Texas Intermediate (WTI), the benchmark US crude oil price, is trading near its lowest level since April 17, currently around the $84.65-$84.70 region, marking a 0.50% decline for the day as of Friday's Asian session [1]. The price action follows a significant sell-off triggered by US President Donald Trump's announcement that a deal had been reached with Iran, with the possibility of a final document being signed soon, potentially over the weekend [1]. However, Iran responded by stating that it had not reached a final decision on an agreement, introducing uncertainty and limiting further downside in oil prices [1].
Geopolitical risks remain elevated after Iranian forces blocked a tanker from transiting through the strategic Strait of Hormuz without coordination, which has kept risk premiums in play and provided some support to crude oil prices despite the overall bearish tone [1]. From a technical perspective, WTI has found acceptance below the $85.00 horizontal support, which coincides with the 100-day Simple Moving Average (SMA), reinforcing a bearish near-term bias [1]. The daily Relative Strength Index (RSI) is near 40, indicating persistent weak momentum, while a negative Moving Average Convergence Divergence (MACD) reading further supports a downside-skewed outlook [1].
The failure to sustain above the $90.00 mark has kept the recent pullback intact, and unless WTI reclaims the 100-day SMA just above $85.00 on a daily closing basis, any rallies are likely to be seen as corrective within a broader consolidation phase [1]. This leaves WTI vulnerable to further retracements toward recent lows in the sub-$80.00 levels [1]. No specific analyst opinions or forward-looking statements beyond technical analysis are provided in the source article [1].
CONCLUSION
WTI crude oil remains under pressure, trading near a two-month low amid uncertainty over a potential US-Iran deal and ongoing geopolitical tensions in the Strait of Hormuz. Technical indicators point to a bearish outlook, with further downside possible unless key resistance levels are reclaimed. Market participants are likely to remain cautious until greater clarity emerges regarding the US-Iran negotiations.