WTI Crude Oil Pulls Back to $70 After Reaching Five-Month High on Supply Concerns

WTI Oil Price Falls to $70 After Five-Month High on Iran-Israel Tensions

West Texas Intermediate (WTI) crude oil prices pulled back to $70.00 per barrel during Friday’s European morning session after reaching a five-month peak of $74.40. The earlier rally was driven by intensifying geopolitical tensions between Israel and Iran, which reignited supply disruption fears.

Geopolitical Risks Trigger Volatility

The latest escalation stems from Israel's pre-emptive strikes on multiple Iranian installations, reportedly aimed at halting Iran's nuclear ambitions. In response, Israeli Defense Minister Israel Katz warned of a potential missile and drone attack from Iran and declared a state of special emergency.

Adding to the geopolitical shockwaves, Iran has withdrawn from the sixth round of nuclear talks with the United States, further complicating diplomatic efforts and oil market sentiment.

“Tonight, Israel took unilateral action against Iran. We are not involved,” said US Secretary of State Marco Rubio, adding, “Iran should not target US interests or personnel.”

Strait of Hormuz at Risk

The Strait of Hormuz, which facilitates nearly 20% of the world’s oil shipping, now faces heightened risks of supply disruptions, making it a critical watch point for global oil traders. Markets reacted strongly, but the retracement back to $70 suggests that profit-taking and intraday selling pressure have capped the rally.

Related: Brent Crude Also Surges Amid Middle East Supply Fears

Technical Overview

• High: $74.40 (Five-month peak)
• Current: ~$70.00
• Support: $68.20 and $67.00
• Resistance: $72.50 and $74.40

Conclusion

WTI oil remains volatile as the market balances heightened geopolitical risks with technical resistance levels. Traders should keep a close eye on Middle East developments, especially regarding Iran’s retaliation, and US foreign policy reactions, which could strongly influence the next directional move in crude prices.