WTI Crude Oil Price Surges Amid Middle East Tensions

The West Texas Intermediate (WTI) crude oil price began the week on an optimistic note, rebounding from last Friday's decline to its highest level since May 21. This surge is attributed to ongoing geopolitical tensions in the Middle East, particularly following a drone and missile attack by Iran-backed Houthi fighters in Yemen on a Saudi Arabian military base.

The attack, combined with a postponed regional meeting between Gulf states and Iran regarding the Strait of Hormuz, has heightened concerns about supply disruptions in the region. As a result, crude oil prices are expected to continue rising in the short term.

WTI is currently trading above $98.00, up over 2% for the day. This price movement is also driven by its technical indicators, including holding above the 100-day Simple Moving Average (SMA) at $85.38 and breaking through the 61.8% Fibonacci retracement at $95.48.

While the WTI price may face initial resistance around the 78.6% Fibo. retracement at $103.23, its near-term bias remains bullish, with strong upside momentum indicated by the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI).