WTI rose at the start of Asian trading on Monday but paused below $98.00. It was trading at $96.79 and remained about $10 under last week\u2019s peak of $106.73, staying below $100.00.<\/p>\n
The move followed peace talks between the US and Iran in Pakistan ending without agreement. A two-week ceasefire stayed in place and was described as \u201cholding well\u201d, keeping the market range-bound.<\/p>\n
Donald Trump said on Truth Social that he ordered the US military to block any vessel entering or leaving Iranian ports from 10:00 Eastern Time (14:00 GMT) on Monday. The move targets oil flows to China after the Revolutionary Guard closed a waterway linked to 20% of global oil supply.<\/p>\n
On the charts, the 4-hour RSI was above 50 and the MACD line was above the signal line, with a green histogram. Price action formed an expanding wedge, with resistance near $98.00, around $108.00, and at $106.73.<\/p>\n
Support levels were near $95.00, with a wider support zone between $84.00 and $86.00. The technical section was produced with help from an AI tool.<\/p>\n
We are seeing a market setup now in April 2026 that is very similar to the one we saw in April 2025. Last year, tensions surrounding the Strait of Hormuz caused a sharp spike in WTI, but the price failed to hold its gains as hopes for a diplomatic solution kept it under $100. This provides a useful guide for navigating the current geopolitical crosscurrents affecting prices.<\/p>\n
Currently, WTI is trading around $87 per barrel, supported by ongoing risk from Red Sea shipping disruptions and conflicts in Eastern Europe. This situation is adding a risk premium to the market, much like the proposed Hormuz blockade did in 2025 when the price jumped towards $98. However, underlying demand concerns are creating a ceiling on this rally, just as the potential for peace talks capped the market last year.<\/p>\n
Implied volatility in oil options is elevated, with the OVX index recently trading above 30, making options contracts relatively expensive. This suggests that selling options, rather than buying them, could be a prudent strategy for traders expecting prices to remain range-bound. Considering the strong support seen around the $84 to $86 level in the 2025 scenario, selling out-of-the-money puts below this range could allow traders to collect premium while betting that fundamentals will prevent a major collapse.<\/p>\n
On the other hand, we must remember the topping pattern that formed in 2025. Today, fundamental data from the Energy Information Administration shows that U.S. commercial crude inventories have been building, recently rising by 2.7 million barrels against expectations of a draw. This supply pressure suggests the current rally may be fragile, and traders should consider buying puts for downside protection if WTI breaks below the key $85 support level.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" WTI edged higher in Asia, capped below $98 amid Iran tensions, ceasefire stability, and bullish signals.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-50776","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t