WTI Crude Rebounds Toward $89 After U.S. Blocks Hormuz

Key Moments

WTI Rises as Hormuz Blockade Stokes Supply Concerns

Oil prices firmed during the Asian session after the U.S. military announced a total blockade of the Strait of Hormuz on Tuesday, a move that intensified worries over supply disruptions and cast doubt on a new round of talks with Iran. The U.S. benchmark West Texas Intermediate (WTI) crude oil contract advanced by about $4 in Asian trading, erasing earlier daily losses and moving back toward the $89.00 area.

Earlier on Tuesday, WTI had been under pressure, having declined nearly 8% over the previous two sessions to set a new three-week low at $84.86. Those losses came amid speculation that the U.S. and Iran were maintaining contacts aimed at restarting peace negotiations. U.S. President Trump later validated those expectations, stating that discussions could resume within the next two days.

Technical Overview: Downtrend Intact Within Wider Range

From a technical perspective, WTI remains biased to the downside but continues to trade within a broader horizontal range. The support region around $84.50 has so far contained selling attempts, providing a key reference point for market participants monitoring potential further weakness.

Indicator Readings Signal Weak Momentum

On the 4-hour chart, technical indicators continue to point to a bearish setup. The Relative Strength Index (RSI) is recovering from oversold territory but remains below the 50 level, indicating that sellers still retain the upper hand. The Moving Average Convergence Divergence (MACD) maintains an expanding negative histogram, underscoring the lack of upside momentum.

Key Technical Levels for WTI

A decisive move below $84.46 would open the door to an extended corrective phase from the early March highs, with sellers likely eyeing the $80.00 psychological area first, followed by the March 10 low near $76.00. On the upside, buyers face several notable resistance levels that could cap any recovery attempts.