WTI Oil Prices Dip as Middle East Tensions Persist

WTI oil prices dipped on Monday after gaining over 5% last week. Despite this pullback, market experts note that the broader backdrop remains largely unchanged due to ongoing Middle East tensions and restrictions on shipping through the Strait of Hormuz.

The potential for fresh US sanctions against Iran is also a significant concern, with Tehran warning that it could halt oil exports if Washington proceeds with its plans. Strategists at BBH highlight the scale of the proposed campaign, describing it as 'the single greatest financial offensive ever marshalled against an adversary.'

From a technical perspective, the recent advance in WTI prices met resistance at the 100-day Simple Moving Average (SMA), which has capped further upside. However, momentum remains constructive with the Relative Strength Index (RS) near 55 and the Moving Average Convergence Divergence (MACD) in positive territory.

Key technical levels include initial resistance around $85, followed by the 100-day SMA at $85.64. A sustained break above this area could open up further gains, while immediate support lies at the 21-day SMA of $81.37 and the former ascending trend line around $75.