WTI Holds Above $75.50 as Iran-Related Uncertainty Supports Prices; 200-Day SMA Remains Key Resistance

WTI crude oil trades in a narrow range during Friday’s Asian session as opposing market forces keep prices largely contained. On one hand, uncertainty surrounding the US-Iran peace process intensified after US Vice President JD Vance canceled his planned trip to Switzerland for talks with Iranian officials, lending support to oil prices through renewed geopolitical risk concerns. On the other hand, the resumption of shipping activity through the Strait of Hormuz has eased fears of supply disruptions, limiting further gains in crude and keeping the market in consolidation mode.

West Texas Intermediate (WTI) crude oil remains confined to a narrow trading range during Friday’s Asian session, struggling to build on its rebound from the $72.80 area, the lowest level since early March. Although prices are modestly higher on the day, trading above $75.50, bullish momentum remains limited as traders weigh conflicting fundamental and technical signals.

Geopolitical developments continue to offer some support to the oil market. Uncertainty surrounding US-Iran peace negotiations increased after US Vice President JD Vance canceled his planned visit to Switzerland for talks with Iranian officials. At the same time, renewed Israeli air strikes in Lebanon have raised concerns that the fragile US-Iran agreement could unravel, providing a risk premium for crude prices. However, gains remain capped as shipping activity through the Strait of Hormuz resumes, allowing previously delayed oil cargoes to reach global markets and easing supply concerns.

From a technical standpoint, the recent break below the key $83.00 level—previously the lower boundary of a three-month trading range—strengthened the bearish outlook for WTI. Momentum indicators continue to favor sellers, with the RSI near 32, indicating that the market is approaching oversold conditions but has not yet reached an exhaustion point. Meanwhile, the MACD remains in negative territory, suggesting that downward momentum is still intact.

Despite the bearish bias, crude oil continues to hold above its crucial 200-day Simple Moving Average (SMA) near $72.83. This support level remains a key line in the sand for traders, and a decisive break below it would likely open the door to deeper losses. Until then, buyers may continue to defend price dips, although a stronger recovery would likely require clear improvements in momentum indicators such as the RSI and MACD.

Oil Daily Chart