Oil Hits Highest Since July as Hormuz Risks Return

Traders' Opinions

Summary:

WTI has climbed above $92 to its highest level since July 23 as renewed US-Iran hostilities increase fears of supply disruption. With Iran threatening a blockade of the Strait of Hormuz, pullbacks could remain limited while $93.25 represents the next major upside hurdle.

BUY WTI

EXP

TRADING

92.008

Entry Price

104.000

83.500

91.987 +1.312 +1.45%

0.0

Pips

Flat

83.500

Exit Price

92.008

Entry Price

104.000

WTI crude oil extends its advance for a second consecutive session on Tuesday, climbing above $92 per barrel and reaching its highest level since July 23. The latest push higher comes as escalating tensions between the United States and Iran revive concerns over Middle Eastern supply and keep a sizeable geopolitical premium embedded in energy prices.

The confrontation intensified over the weekend after US forces struck and disabled three Iranian oil tankers, following an IRGC ballistic missile attack targeting two US Navy warships. The renewed exchange has quickly shifted attention back toward the security of regional energy infrastructure and the possibility of further disruption to crude flows.

TD Securities warned that the latest escalation demonstrates how fragile recent periods of de-escalation have been without a durable agreement between Washington and Tehran. Any further military confrontation could quickly increase uncertainty surrounding supply from the Gulf.

Those risks have become more pronounced following fresh warnings from Iran. Tehran has threatened retaliation against additional US attacks, while Iranian security chief Mohsen Rezaei said the country was preparing to enforce a full blockade of the Strait of Hormuz in response to economic sanctions.

The Strait remains one of the world's most strategically important oil transit routes, meaning any prolonged restriction could significantly tighten global supply conditions. Even the threat of disruption is enough to keep traders reluctant to aggressively sell crude while tensions remain elevated.

That backdrop continues to favour the upside for WTI. Although the strong advance could produce periods of profit-taking, corrective pullbacks are likely to attract renewed buying while the risk of supply disruption remains unresolved.

The immediate hurdle now sits around the July high near $93.25. A sustained break above that level would strengthen the bullish structure and could clear the way for another extension higher as traders price a greater geopolitical premium into crude.

Technical Analysis

WTI is maintaining a constructive bullish setup on the 4-hour chart, with the recovery from the late-August low near $80.00 continuing to attract buyers. The advance has carried crude toward $91.80, placing price against a major barrier that could determine whether the rally has enough strength to extend into another leg higher.

The $91.00–$93.00 region is particularly important because it coincides with the previous July peak. Price has returned to this area after forming a series of higher lows during the recent advance, showing that buying pressure remains strong. Some consolidation or a brief retracement around current levels would be healthy after the latest run, but it would not necessarily undermine the wider bullish picture.

If WTI establishes itself above $93.00, the technical landscape becomes considerably more favourable for buyers. Breaking the previous swing high would confirm that resistance has been cleared and could encourage an acceleration toward $95.00, followed by the psychological $100.00 mark.

The chart leaves room for an even larger extension if momentum persists. Above $100.00, the next substantial supply area is located around $104.00–$105.00, which stands as the broader upside objective. The projected path also allows for a temporary retest after the initial breakout before buyers attempt to extend the rally.

Any near-term weakness should initially be monitored around $89.50–$90.50. Holding this region would keep the breakout attempt intact and could provide another platform for buyers. More substantial support is located around $83.00–$84.00, and a return below that zone would be required to seriously damage the broader recovery.

For now, the technical picture suggests WTI is pressing against resistance with bullish momentum still intact. A short-term pullback remains possible, but as long as buyers defend the recent structure, the preferred scenario remains a break above the July highs followed by an extension toward $100.00 and ultimately $104.00.

TRADE RECOMMENDATION

BUY WTI

ENTRY PRICE: $92.00

STOP LOSS: $83.50

TAKE PROFIT: $104.00

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Oil Hits Highest Since July as Hormuz Risks Return

Technical Analysis

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