West Texas Intermediate (WTI) crude oil futures on NYMEX climbed 1.8% to near $91.20 during the early European trading session on Tuesday, supported by renewed uncertainty in the Middle East following United States attacks on Iranian missile launching sites and Iranian boats deploying mines [1]. Despite these developments, the market reaction has been somewhat muted, as the US Central Command clarified that the attacks were conducted in 'self-defense' and were not intended to break the ceasefire. There have been no official comments from Iran regarding the incidents [1].
US President Donald Trump expressed confidence that negotiations with Iran are 'progressing well,' according to Bloomberg, which may have contributed to limiting the upside in oil prices [1]. Additionally, US Secretary of State Marco Rubio emphasized the strategic importance of the Strait of Hormuz, stating that its closure would be 'unlawful, unacceptable, and unsustainable' for the global energy supply, as it is a critical passage for nearly 20% of the world's energy [1].
From a technical perspective, WTI trades higher at around $91.00, but the near-term bias remains bearish as the price stays below the 20-day Exponential Moving Average (EMA) at $96.15. The 14-day Relative Strength Index (RSI) has fallen to the mid-40s, indicating easing downside pressure but not a clear reversal. The first significant resistance is at the 20-day EMA ($96.15), and a daily close above this level would be needed for a more sustained recovery toward $100. Conversely, if WTI fails to hold the May 6 low at $86.92, prices could extend their decline toward $80.00 [1].
CONCLUSION
WTI oil prices have risen on renewed Middle East tensions, but the market response has been tempered by clarifications from US officials and ongoing diplomatic efforts. Technical indicators suggest that while some downside pressure has eased, significant resistance remains, and a clear reversal is not yet evident.