WTI Oil Hits Resistance Near $85 Amid Ongoing Middle East Tensions
West Texas Intermediate (WTI) oil is trading lower on Monday, despite its 5% gain last week. The pullback comes as Middle East tensions remain elevated and shipping through the Strait of Hormuz continues to be restricted. WTI currently trades around $84.37 per barrel, down about 2.28% from Friday's close.
The situation is further complicated by the US's plans to announce fresh sanctions against Iran, which could lead to a halt in oil exports through the Strait of Hormuz and elsewhere in the Persian Gulf. Strategists at BBH describe the US campaign as 'the single greatest financial offensive ever marshalled against an adversary', with China being the key pressure point due to its significant trading relationship with Iran.
From a technical perspective, WTI's recent advance met resistance at its 100-day Simple Moving Average (SMA), which has capped further upside. The prior downward resistance trend line now acts as an immediate topside obstacle, but momentum remains constructive with the Relative Strength Index (RSI) near 55 and the Moving Average Convergence Divergence (MACD) in positive territory.