WTI reaches new monthly high near $100.50 as Iranian attacks on oil tankers continue

• Oil approaches $100.50 as Iran continues its attacks on tankers.
• Iran threatens to widen its blockade to include the Bab al-Mandeb Strait and the Suez Canal.
• Accusing the US of betrayal, Ukraine renews strikes on Russian oil infrastructure.

A 2.5% rise has taken West Texas Intermediate (WTI) futures on NYMEX to around $100.50, their highest in over a month. Oil is now within reach of its almost five-month peak of $102.11.

With almost 20% of global energy supply passing through the Strait of Hormuz, Iran’s continued attacks on tankers seeking to navigate the chokepoint are heightening supply risks. The resulting threat to energy flows is driving a sharp increase in oil’s risk premium.

Two tankers were set ablaze by mines and stopped south of the Strait of Hormuz, Reuters reported, citing Iran’s revolutionary guards’ navy. The navy did not specify a date for the incident.

Over the weekend, Iran said it was ready to retaliate against US-Israel attacks and warned that it could extend the blockade to the Bab al-Mandeb Strait and the Suez Canal.

Hopes of increased energy supplies from Moscow have also been dented by Ukraine’s continuing attacks on Russian oil refineries. According to NBC News, Ukraine renewed those strikes after President Volodymyr Zelenskyy angrily accused the United States of betraying Kyiv through a “dangerous” withdrawal of support vital to its defence against Russia.

WTI Retains a Bullish Technical Bias

At $100.49 on the daily chart, WTI US Oil remains above its 20-day exponential moving average (EMA) of $93.79. That position supports a bullish near-term outlook and leaves the wider uptrend intact despite recent volatility. Meanwhile, the Relative Strength Index (14) stands at 66.38, in positive territory but below overbought levels. This indicates that upward momentum remains constructive, albeit increasingly stretched.

Should a corrective pullback develop, the first support lies at the 20-day EMA of $93.79, where buyers are likely to defend the existing trend. Holding above this underlying demand zone would favour buying on dips rather than aggressive selling. Any consolidation would then likely be viewed as a pause in the broader rise, rather than a reversal of the trend.

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