West Texas Intermediate (WTI), the benchmark US crude oil price, experienced a notable decline during the Asian session on Wednesday, falling to a one-week low near the mid-$97.00s and marking a drop of nearly 2.5% for the day [1]. This downward movement follows a recent pullback from a nearly four-week high reached last Thursday [1]. The price pressure is attributed to renewed hopes for a US-Iran peace deal after US President Donald Trump announced a temporary pause in 'Project Freedom,' which is aimed at restoring commercial shipping traffic through the Strait of Hormuz [1]. Additionally, US Defense Secretary Pete Hegseth stated that the US-Iran ceasefire is currently holding and emphasized that the US is not seeking to re-escalate tensions with Tehran, further supporting the prospect of an agreement [1].
From a technical standpoint, the overnight breakdown below the 200-hour Simple Moving Average (SMA) acted as a key trigger for bearish sentiment among traders [1]. The failed attempt to sustain gains above $98 has shifted the short-term market structure lower, with momentum indicators such as the Moving Average Convergence Divergence (MACD) remaining in negative territory and the Relative Strength Index (RSI) hovering near 37, both suggesting continued downside pressure [1]. The decline has so far stalled near the 38.2% Fibonacci retracement level at $96.40, which is identified as a pivotal support level [1]. A decisive break below this support could reinforce the negative bias and potentially accelerate losses toward the 50% retracement at $93.09, with further downside targets at $89.76, $85.02, and the cycle low near $78.97 [1].
On the upside, immediate resistance is seen at the 200-hour SMA at $98.63, with a stronger barrier at the 23.6% Fibonacci retracement at $100.55 [1]. Only a decisive recovery above these resistance levels would alleviate the current bearish tone in the market [1].
No analyst opinions or forward-looking statements beyond the technical outlook were provided in the article [1].
CONCLUSION
WTI crude oil prices are under pressure due to easing geopolitical tensions between the US and Iran and bearish technical signals. The market is closely watching the $96.40 support level, with further downside possible if this is breached. A recovery above key resistance levels would be needed to shift sentiment back to bullish.