• The White House announced a deal with Iran, pending the signing of the latter.
• US President Donald Trump said the Strait of Hormuz will reopen once the deal is signed.
• WTI declined to fresh two-month lows in the $84.00 region, turned bearish in the near-term.

West Texas Intermediate (WTI) trades around $85 early in the Asian session on Friday, its lowest since mid-April. The black gold fell alongside the US Dollar (USD) following a proclamation from United States (US) President Donald Trump announcing a settlement of war with Iran. He added it is subject to settling over the next few days, adding that the Strait of Hormuz will soon be reopened and that Tehran agreed on nuclear weapons.

US President Trump canceled scheduled strikes and bombings against Iran, and noted the Strait of Hormuz will reopen as soon as the deal is signed.

Also, Iran’s FARS news agency noted that, given that the US accepted Iran's proposed text, the likelihood of its approval by Iran is high. Additionally, Axion reported that Iran confirmed talks produced an agreement in principle, but Supreme Leader Khamenei's approval is still needed.

WTI technical outlook

aligns with the 20-period SMA at $88.12, where the short-term bear trend is likely to be challenged, followed by the 100-period SMA at $90.85 and then the 200-period SMA near $94.70, which caps the broader recovery

From a technical standpoint, WTI is bearish, according to 4-hour chart readings. The black gold holds well beneath the 20-, 100-, and 200-period simple moving averages (SMAs) at $88.12, $90.85, and $94.70, respectively. The layered overhead SMAs suggest rallies are likely to be sold, while the Relative Strength Index (RSI) indicator slipping toward 38 and negative Momentum indicator readings hint that downside pressure is still dominating despite the recent stabilization attempt.

On the topside, initial resistance aligns with the 20-period SMA at $88.12, where the short-term bear trend is likely to be challenged, followed by the 100-period SMA at $90.85 and then the 200-period SMA near $94.70, which caps the broader recovery. On the downside, initial support comes at $83, followed by the $80 psychological mark. Once below the latter, April's monthly low at $78.88 comes next.

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