WTI Crude Oil Price Surges Amid US-Iran Tensions and Geopolitical Risk

The West Texas Intermediate (WTI) crude oil price surged to a four-day high during the Asian session, driven by ongoing tensions between the US and Iran. The Strait of Hormuz, a critical shipping route in the Middle East, remains a point of contention between the two nations.

Rights to use the waterway are being negotiated, with Iran insisting that the US naval blockade and economic sanctions must be lifted for it to reopen fully. In addition, the country is seeking compensation for damage caused during past conflicts.

A recent attack on Saudi Arabia's Jazan refinery by Houthi militants in Yemen has also contributed to rising crude oil prices. This geopolitical risk premium is supporting the price of WTI, which holds a modest bullish bias above its 200-period Simple Moving Average (SMA) at $76.80.

The Relative Strength Index (RSI) sits near 54, while the Moving Average Convergence Divergence (MACD) remains in positive territory, indicating that upside momentum is present but not overstretched.