• The Oil price reflects strength as the Strait of Hormuz remains closed.
• Washington states that Iran’s proposal to end the war is not good enough.
• Citi expects Brent Crude Oil to extend the rally to $150 if Hormuz remains closed through the end of June.

West Texas Intermediate (WTI), futures on NYMEX, trades over 1% above $96.00 during the European trading session on Tuesday. The Oil price demonstrates broader strength as the global energy crisis remains intact in the wake of the long closure of the Strait of Hormuz, a vital passage to almost 20% of global energy supply.

The uncertainty over the Hormuz closure remains high amid stalled peace talks between the United States (US) and Iran. Washington is showing the least interest in resuming negotiations with Iran, citing that their proposal “is not good enough”. Meanwhile, Iran wants the US to lift its blockade on Iranian ships as a precondition for negotiations on Tehran’s nuclear ambitions.

Market experts have warned that oil prices could rise further as long as the Strait of Hormuz remains closed. Under a bull-case scenario, Citibank assumes oil flows through the strait remain disrupted through the end of June and sees Brent prices spiking to $150 a barrel. As of writing, Brent Crude Oil trades 1.1% higher to near $103.

Meanwhile, investors await monetary policy announcements from key global central banks, including the Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of England (BoE), to get fresh cues on the global oil demand outlook.

WTI technical analysis

WTI US Oil trades higher at around $96 as of writing. The near-term tone stays constructive as price holds above the 20-day exponential moving average (EMA) at roughly $92.12.

Momentum, reflected by the Relative Strength Index (14) hovering in the mid-50s, suggests mild bullish pressure rather than overbought conditions, leaving scope for further gains while the contract remains supported above its short-term EMA.

On the topside, initial resistance is seen at the prior downward-trending border of the Symmetrical Triangle around $100.37, where a clear close higher would open the door to a more decisive bullish extension. On the downside, immediate support emerges at the 20-day EMA near $92.12, with the rising structural floor from the upward-sloping border of the above-mentioned chart pattern sitting much lower around $80.01; a drop through this latter area would significantly undermine the current bullish bias.

(The technical analysis of this story was written with the help of an AI tool.)