Last Updated on 20/08/2026
WTI Price Forecast: Oil Climbs Above $84.50 as Strait of Hormuz Tensions Intensify
WTI crude oil prices rebound to around $85.50 per barrel during Thursday’s Asian session, extending their recovery as escalating US-Iran tensions and growing risks around the Strait of Hormuz fuel concerns over potential supply disruptions.
Geopolitical pressure intensified after the United Arab Emirates suspended financial and economic transactions with Iran following alleged missile attacks. Despite the heightened risks, Gulf oil producers continue to maintain relatively strong export flows by relying on alternative shipping routes and less visible transport channels.
Market risks remain elevated as stalled US-Iran negotiations and the threat of further attacks raise concerns over energy supplies. TD Securities cautioned that worsening geopolitical tensions could keep a risk premium embedded in crude oil and refined products.
US inventory data offered a mixed signal for oil markets. The latest EIA report showed domestic crude stockpiles increasing by 4.4 million barrels, while distillate inventories declined by 1.5 million barrels to their lowest level in about a month. The contrasting supply trends, combined with rising geopolitical risks, could keep WTI volatile in the near term.
Silver Price Forecast: XAG/USD Hits Two-Month High as US Expands Treasury Buybacks
Silver (XAG/USD) climbs to a fresh two-month high of $67.33 during Thursday’s Asian session, supported by a sharp decline in longer-term US Treasury yields after the US Treasury announced plans to double its bond buyback operations.
The expansion of Treasury buybacks has pushed long-dated yields lower and added pressure on the US Dollar. The 10-year Treasury yield remains near 4.64% after falling more than 1.5% on Wednesday, while the 30-year yield has dropped close to 5.18%. Meanwhile, the US Dollar Index (DXY) is hovering near a seven-week low around 98.77.
Falling bond yields tend to increase the appeal of non-yielding precious metals such as silver. However, the latest FOMC minutes showed that several policymakers favored the possibility of further interest-rate hikes if inflation remains elevated, creating a potential headwind for silver.
Silver Technical Outlook
XAG/USD is trading around $67.10, well above its 20-period EMA at $63.20, keeping the short-term technical outlook bullish. The RSI stands at 61.48, indicating positive momentum while remaining below overbought territory.
Immediate support is located around $67.10, followed by stronger dynamic support near $63.20. On the upside, a sustained move higher could bring $70.00 into focus, with the June 16 high around $71.19 representing the next major resistance level.
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