WTI Rises as Hormuz Tensions Flare After Tanker Incident

Key Moments

WTI Spikes on Reported Mine Strike in Hormuz

West Texas Intermediate (WTI) crude oil extends its intraday advance, trading near $84.40 per barrel during Monday’s Asian session. The move follows claims from Iran’s Islamic Revolutionary Guard Corps (IRGC) that a supertanker caught fire in the Strait of Hormuz after striking two naval mines along the southern corridor of the key shipping channel.

IRGC representatives said the tanker was attempting to transit the strait without proper authorization and warned that all vessels must fully adhere to Iranian regulations when passing through the area.

Missile Exchanges Escalate U.S.-Iran Tensions

In a significant escalation, Iran launched a coordinated series of ballistic and anti-ship cruise missiles from multiple locations, including Tehran, Lorestan, Karaj, Khorramabad, and Shiraz. These barrages were directed at positions in the Strait of Hormuz and were described as retaliation for an earlier United States strike on Iranian launcher facilities located on Larak Island, which the IRGC had pledged to answer.

The prior U.S. operation targeted Iranian rocket installations that were reportedly prepared for naval mine deployment in the strait, a vital route for global energy shipments. This action marked the first direct U.S. strike on Iranian military infrastructure in more than a month. While U.S. forces had been closely monitoring the waterway to protect trade flows, the move signaled a departure from a recent approach that had emphasized economic sanctions over the use of direct military force to influence Tehran’s behavior.

Brent Outlook: Upside Seen Constrained by Rebounding Gulf Exports

Brown Brothers Harriman notes that, despite recent firming in Brent crude, “upside pressure on crude oil prices appears limited.” The firm highlights Goldman Sachs estimates showing that “oil exports from the Persian Gulf have recovered to around two-thirds of pre-war levels as more vessels transit the Strait of Hormuz,” indicating that improving supply from the region could restrain additional price gains.

Technical Picture: WTI Maintains Bullish Structure

On the daily chart, WTI US Oil is quoted at $84.40 and maintains a constructive bullish bias, with prices holding above both the short-term nine-period Exponential Moving Average (EMA) and the medium-term 50-period EMA. This configuration, with spot trading above these moving averages, points to a supportive trend backdrop. The 14-day Relative Strength Index (RSI) stands at 55.13, situated in a neutral-to-positive band that suggests ongoing upward momentum without signaling overbought conditions.

On the downside, immediate support is identified at the nine-period EMA around $83.19, followed by the 50-period EMA near $81.82. As long as WTI remains above this support cluster, any declines are likely to be interpreted as corrective moves within the prevailing uptrend, keeping scope open for buyers to drive prices higher once new resistance levels are established by subsequent price action.