Oil Prices Stay Supported as Hormuz Shipping Activity Slows

Traders' Opinions

Summary:

WTI holds around $88.85 after testing $90 as restricted traffic through the Strait of Hormuz keeps supply concerns elevated. Renewed US-Iran attacks remain supportive, although Trump's comments have raised hopes that the escalation could be short-lived.

BUY WTI

EXP

TRADING

90.749

Entry Price

95.000

85.000

89.574 +0.484 +0.54%

0.0

Pips

Flat

85.000

Exit Price

90.749

Entry Price

95.000

WTI crude oil is consolidating around $88.85 per barrel on Thursday after the latest rally stalled near the psychological $90.00 level. Despite the pause, the underlying tone remains supported by restricted energy flows through the Strait of Hormuz as tensions between the US and Iran continue.

Shipping activity through the key waterway remains unusually low. Kpler data showed only four commodity vessels crossed the Strait on Tuesday, down from 10 on Monday and well below the 10-day average of roughly 13. With Hormuz accounting for close to 20% of global energy supply, reduced traffic continues to keep supply concerns firmly in the market.

The latest disruption follows renewed military exchanges between Washington and Tehran after almost a month of relative calm. The US carried out fresh strikes against Iranian military targets, seeking to prevent forces from deploying mines around the strategic passage. Iran retaliated by targeting US bases in Jordan and warned that further attacks could follow.

The escalation has helped preserve the geopolitical premium in crude even as WTI struggles to extend its rally beyond $90.

However, comments from US President Donald Trump have introduced some caution into the move. Trump suggested on Wednesday that the renewed confrontation would not continue for “too long,” raising the possibility that tensions could ease before causing a more prolonged disruption to regional oil flows.

For now, restricted Hormuz traffic continues to provide a supportive backdrop for crude, leaving WTI's broader outlook positive despite the current consolidation below $90.00.

Technical Analysis

The WTI 4-hour chart remains firmly bullish, with crude extending its recovery toward $90.80 after buyers successfully defended the latest pullback. The broader structure continues to show higher highs and higher lows, while the strong advance from the late-August trough around $79.00 suggests that bullish momentum remains intact.

Price is now challenging the $89.00–$90.50 resistance zone, an area that previously triggered a sharp rejection in July. This makes the current test particularly important. A sustained break above $90.50–$91.00 would confirm that buyers have cleared a major technical barrier and could accelerate the next leg higher.

A short-term pullback remains possible following the recent rally. However, as long as WTI holds above the $88.50–$89.00 region, such weakness would look more like a retest of the breakout area rather than a reversal. Successful support here would provide a stronger platform for another push through $91.00.

Once that barrier gives way, the chart leaves relatively limited resistance immediately overhead. The next upside objective would sit around $94.50–$95.00, before attention shifts toward the psychological $100.00 level, which aligns closely with the larger bullish projection shown on the chart.

On the downside, a failure to hold the current breakout would expose the $82.80–$84.00 support zone. A decisive move beneath that region would be needed to seriously undermine the current bullish structure.

For now, WTI's strong recovery, higher-low formation and renewed test of major resistance favour further upside, with a clean break above $91.00 potentially opening the door toward $95.00 and eventually $100.00.

TRADE RECOMMENDATION

BUY WTI

ENTRY PRICE: $90.75

STOP LOSS: $85.00

TAKE PROFIT: $95.00

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Oil Prices Stay Supported as Hormuz Shipping Activity Slows

Technical Analysis

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