Middle East Tensions Send WTI Oil Prices Rebounding Amid Weekend Speculation
WTI oil prices rebounded from session lows as traders remained cautious ahead of the weekend. The situation in the Middle East remains volatile, with President Trump expressing his loss of confidence in Iranian negotiators.
Trump stated that Iran had lied and that the US would 'hit Iran very hard' if a deal was not reached. This has led some traders to speculate about potential military action over the weekend when markets are closed.
The Strait of Hormuz, a critical oil supply route, is effectively shut down, although some vessels have managed to pass through.
In technical analysis, WTI oil remains stuck below the resistance level at $85.50 - $86.00. If prices break above this level, they could reach the next resistance area around $90.50 - $91.00 and potentially push towards $96.00. On the downside, a settlement below $81.50 - $82.00 could lead to additional losses, with WTI oil falling towards recent lows near $78.00.