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WTI hovers near $92.50 as US Iran tanker conflict boosts oil risk premium
WTI is near its 200-day simple moving average at $78.52 and is facing resistance at the 78.6% Fibonacci level near $98.69, with traders awaiting US inflation data for Fed-rate cues.
West Texas Intermediate crude is trading near a fresh three-month high around the $92.50 area but has not yet built follow-through, as geopolitical tensions between the US and Iran keep the oil risk premium elevated, according to FXStreet.
FXStreet links the firmer crude tone to developments in the Gulf of Oman and near Kharg Island, where the US attacked Iranian oil tankers, and Iran responded with more than 30 missiles fired at US forces at the Al Azraq base in Jordan.
The risk also extends to warnings from Iran's Islamic Revolutionary Guard Corps about possible targeting of ships in Kuwaiti and Bahraini ports that host US forces, while Iran's security chief said Tehran is preparing to enforce a full blockade around the Strait of Hormuz in response to economic sanctions.
Technically, FXStreet says WTI remains well above its 200-day simple moving average at $78.52, with momentum indicators constructive, and it cites an immediate upside resistance near the 78.6% Fibonacci retracement at $98.69, while initial support is around the 50% retracement near $87.
Latest closeWTI crude $94.28 ▲3.1%