WTI hovered close to a multi-month low near March levels, holding above the $72.50 area amid fading supply-risk fears.

WTI crude oil entered a phase of bearish consolidation after sliding to its lowest level since March, with sentiment remaining weighed down by easing supply concerns. The resumption of shipping activity through the Strait of Hormuz reduced fears of major supply disruptions, putting additional pressure on oil prices.

However, the downside appears somewhat limited as traders remain cautious amid mixed signals surrounding relations between the United States and Iran. Conflicting statements regarding nuclear negotiations and broader geopolitical developments have discouraged market participants from aggressively increasing bearish positions, helping WTI hold above the mid-$72.00s region.

West Texas Intermediate (WTI) crude oil traded in a narrow range during Wednesday’s Asian session, consolidating just above the mid-$72.00s per barrel after falling to its lowest level since early March in the previous session.

Oil prices remained under pressure as signs of improving supply conditions eased market concerns. Shipping activity through the Strait of Hormuz has gradually resumed, with reports indicating that a limited number of vessels are being allowed to transit the strategic waterway each day under coordination with Iran’s naval authorities. At the same time, the United States Department of the Treasury granted a temporary 60-day sanctions waiver permitting the production, transportation, and sale of Iranian crude oil, petroleum, and petrochemical products through August 21. Combined with progress in diplomatic discussions between the United States and Iran, as well as a reduction in hostilities involving Lebanon, these developments have helped alleviate fears of supply disruptions and reinforced the bearish outlook for crude prices.

However, sellers remain cautious about extending losses aggressively due to lingering geopolitical uncertainty. While Donald Trump stated that Iran had agreed to extensive long-term nuclear inspections, Iranian officials pushed back against the claim, insisting that no new commitments had been made regarding inspections. The conflicting narratives have kept geopolitical risk premiums embedded in the market, offering some support to oil prices.

From a technical perspective, the absence of strong follow-through selling below the closely watched 200-day Simple Moving Average (SMA) suggests that downside momentum may be losing pace in the short term. Even so, with supply concerns continuing to ease and diplomatic progress reducing immediate geopolitical risks, the broader fundamental backdrop still points to a bearish bias for WTI crude oil.