WTI Price Retakes $88.00 as Strait of Hormuz closure fuel supply disruption fears

• WTI attracts fresh buyers and reverses a part of the previous day’s sharp retracement slide.
• The closure of the Strait of Hormuz fuel supply concerns, lending support to the commodity.
• The technical setup seems tilted in favor of bulls and backs the case for further appreciation.

West Texas Intermediate (WTI) Crude Oil prices regain positive traction following the previous day’s dramatic turnaround from the highest level since June 2022 and climb back above the $88.00 mark during the Asian session on Tuesday. The ongoing war in the Middle East and the closure of the Strait of Hormuz raise concerns about a major disruption to global fuel supplies, lending some support to the black liquid.

Meanwhile, the International Energy Agency (IEA) is reportedly discussing a coordinated release of emergency oil reserves among member countries to stabilize markets. Furthermore, the Trump administration announced a $20 billion reinsurance program aimed at reviving shipping in the Strait of Hormuz. This, however, does little to ease market worries, suggesting that the path of least resistance for Crude Oil prices is to the upside.

From a technical perspective, Monday’s sharp intraday decline stalled ahead of the 200-hour Exponential Moving Average (EMA), which is currently pegged near the $78.85 region and should act as a key pivotal point. The Moving Average Convergence Divergence (MACD) indicator rises toward the zero line after a deep negative phase, with the histogram contracting, which suggests fading bearish momentum and scope for further recovery.

The Relative Strength Index at 45.33 emerges from oversold territory and edges toward the midline, reinforcing improving intraday buying pressure without signaling overbought conditions. Immediate support aligns at $86.85, with a break below exposing the $84.70 area where recent hourly lows concentrate above the rising 200-hour EMA. A deeper slide would bring $83.00 into focus as a stronger downside pivot within the broader uptrend.

On the topside, initial resistance appears at $89.00, followed by $91.00, where prior congestion could slow advances. A sustained move above $91.00 would open the path toward $96.80 as the next upside target within the ongoing recovery phase. Nevertheless, the near-term bias turns cautiously bullish as Crude Oil prices extend well above the 200-hour EMA, which keeps the broader trend pointed higher despite the recent correction from the $112 area.

(The technical analysis of this story was written with the help of an AI tool.)

WTI 1-hour chart