S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
WTI consolidates around $86.00; bulls potential intact amid US-Iran impasse
- WTI steadies following the previous day’s late pullback from a three-week high.
- The US-Iran standoff over the Strait of Hormuz lends support to the commodity.
- The black liquid seems poised to register gains for the second successive week.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – oscillates in a range around the $86.00 mark during the Asian session on Friday and remains well within striking distance of a three-week high, touched the previous day. The black liquid seems poised to register gains for the second consecutive week and build on a two-week-old uptrend amid a supportive fundamental backdrop.
The US and Iran remain at loggerheads over restoring safe commercial navigation through the strategic Strait of Hormuz, fueling supply concerns and acting as a tailwind for crude oil prices. Adding to this, Yemen’s Iran-backed Houthi militant group claimed to have targeted eight Saudi oil tankers since late July, when it declared a maritime blockade on Saudi shipping, raising the risk of a broader regional conflict.
Meanwhile, President Donald Trump said the US will launch the most crushing economic operation against Iran and threatened severe penalties on any nation that helps Tehran evade sanctions or does business with Iran. Moreover, Vice President JD Vance said that economic pressure is the most effective tool against Iran. This keeps the geopolitical risk premium in play and validates the positive outlook for oil prices.
Bulls, however, seem hesitant to place fresh bets and opt to wait for fresh developments surrounding the Middle East crisis. The broader fundamental backdrop, however, suggests that the path of least resistance for the commodity remains to the upside. Hence, any corrective pullback is more likely to be bought into and remain limited.
WTI 4-hour chart
Technical Analysis
WTI keeps a constructive bullish tone above the 61.8% Fibonacci retracement of the July-August slide and the 200-period Exponential Moving Average (EMA). The cluster of underlying Fibonacci supports between $85.02 and $80.65 suggests the recent advance is underpinned by a solid structural base, with buyers retaining control while price stays north of these levels.
On the topside, immediate resistance aligns at the 78.6% Fibo. retracement at $88.14, ahead of the recent swing-high region at $92.11. On the downside, initial support is seen at the reclaimed 61.8% retracement at $85.02, followed by the 50% level at $82.84 and the 200-period EMA at $81.28, with deeper floors at the 38.2% retracement at $80.65 and lower Fibonacci anchors at $77.94 and $73.56.
