West Texas Intermediate (WTI) crude oil futures on NYMEX fell almost 3% to trade near $87.60 during the European session on Thursday, reflecting significant selling pressure in the market [1]. The decline comes as hopes persist that negotiations between the United States and Iran towards a permanent peace deal remain intact, despite recent exchanges of military attacks between the two nations [1]. According to a CNN report cited in the article, a diplomatic source confirmed that US-Iran talks are ongoing, even after recent hostilities [1]. Additionally, The Wall Street Journal reported that US President Trump instructed aides to communicate to Iran via Qatar that the recent US attacks were not intended as a 'restart of all-out war,' but were in response to the downing of a US Apache helicopter over the Strait of Hormuz earlier in the week [1]. The US Central Command (CENTCOM) has conducted military operations targeting several sites in Iran over the past two days as retaliation for the helicopter incident [1].
From a technical perspective, WTI remains under bearish pressure, trading below the 20-day Exponential Moving Average (EMA) at $91.52, which is identified as a key resistance level [1]. The Relative Strength Index (RSI) is around 43, indicating persistent downside momentum but not yet signaling an oversold condition [1]. If WTI fails to hold above the June 9 low at $84.87, the price could extend its decline toward the April 17 low at $78.88 [1]. Conversely, a sustained move above the 20-day EMA would be required to alleviate the current bearish bias and potentially trigger a recovery [1].
The market is closely monitoring developments in US-Iran negotiations, as any progress or setbacks could significantly influence oil prices going forward [1]. Investors are seeking fresh cues regarding the outcome of these talks and the potential for a permanent peace deal [1].
CONCLUSION
WTI crude oil experienced a sharp decline of nearly 3% amid ongoing US-Iran tensions and military actions, though diplomatic negotiations are reportedly still in progress. Technical indicators suggest further downside risk unless key resistance levels are reclaimed. The market remains highly sensitive to updates on US-Iran relations, which will likely dictate near-term price movements.