Oil Prices Rise After Fresh US Strikes on Iran

Traders' Opinions

Summary:

WTI crude remains supported near $79 as escalating US-Iran tensions fuel fresh supply concerns, while softer US inflation has eased expectations for aggressive Federal Reserve tightening, adding further support to oil prices.

BUY WTI

EXP

TRADING

79.189

Entry Price

94.000

70.000

78.509 -0.623 -0.79%

0.0

Pips

Flat

70.000

Exit Price

79.189

Entry Price

94.000

West Texas Intermediate (WTI) crude extended its rally for a third straight session on Wednesday, trading around $79.40 per barrel as renewed military action between the United States and Iran heightened concerns over global oil supplies.

Oil prices were supported after US Central Command launched fresh strikes on Iranian military facilities near the Strait of Hormuz, a strategic shipping route that carries nearly 20% of global oil exports. The attacks followed renewed warnings from US President Donald Trump, who threatened further military action, raising fears of prolonged disruptions to energy flows.

Geopolitical tensions have once again become the dominant driver of crude prices. While physical supply has not yet been significantly affected, markets continue to build in a growing risk premium as uncertainty around the Strait of Hormuz persists.

Additional support came from weaker-than-expected US inflation data. June CPI slowed to 3.5% year-over-year from 4.2% in May, while monthly inflation fell 0.4%, easing expectations of aggressive Federal Reserve tightening. Lower rate expectations have improved the demand outlook for commodities, helping keep crude prices supported despite broader economic uncertainties.

Technical Analysis

WTI is showing a meaningful change in character on the 4-hour chart after breaking above the descending channel that had controlled price action since May. The move through the upper trendline, followed by a push above the $76.00–$77.00 resistance zone, suggests the market is transitioning from a prolonged bearish phase into a recovery structure.

Price is now trading near $79.15, where it is beginning to consolidate after the sharp breakout. The important point is that WTI has not immediately fallen back inside the old channel. Instead, buyers are attempting to hold the breakout and turn the former resistance area into support. That behavior gives the latest advance more credibility than a simple short-covering bounce.

The $76.00–$77.00 region is now the key technical floor. A controlled pullback into this zone followed by renewed buying would reinforce the bullish setup and create a stronger base for continuation. The next major obstacle appears around $93.00–$94.00, where the chart highlights a broad supply area and where previous rebounds were met with heavy selling.

A clean break above $80.50–$81.00 would provide the next confirmation that buyers are maintaining control. From there, the market could accelerate toward $84.00, followed by the larger target near $94.00.

The bullish view would lose strength if WTI slips back below $76.00 and remains there. Such a reversal would place price beneath the breakout zone and raise the risk of a false move, potentially sending the market back toward $72.00.

The current configuration favors further upside because the long-running bearish channel has been broken and the market is holding above former resistance rather than immediately rejecting lower.

TRADE RECOMMENDATION

BUY WTI CRUDE OIL

ENTRY PRICE: $79.20

STOP LOSS: $70.00

TAKE PROFIT: $94.00

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