WTI Crude Holds Near $74 as Middle East Conflict Fuels Supply Disruption Fears

WTI Oil Price Holds Near $74 as Geopolitical Supply Risks Dominate Market

WTI crude oil (West Texas Intermediate) is trading flat near $74.00 per barrel in early European hours on Friday, consolidating close to an 11-month high. Despite mild intraday corrections, the broader bullish sentiment remains intact as supply concerns tied to escalating Middle East tensions grip energy markets.

Market Overview

Middle East Crisis Supports Oil Prices

• Traders are on edge over fears that a further escalation between Israel and Iran could shut down the Strait of Hormuz, a critical passage for nearly 20% of global oil flows.
• Israel’s defense minister’s renewed threats against Iran's Supreme Leader and Iran’s vow of “irreparable damage” if the US intervenes keep geopolitical tensions high.

US Policy Delay Caps Upside

• While geopolitical tensions remain elevated, the US has yet to decide on a military strike against Iran, which tempers crude’s rally.
• Thursday’s low at $72.45 marked a momentary bearish reversal, but the dip was bought quickly, confirming strong support from market participants.

Weekly Technical and Fundamental Trends

• WTI has gained over 20% in the last three weeks.
• Resistance: $75.00 zone remains key, with bulls repeatedly testing the level.
• Support: $72.45 intraday low offers near-term floor.
• If conflict escalates further, crude prices may break above $100 in coming weeks.

What to Watch

• US foreign policy decisions in the next two weeks will be pivotal.
• Any military escalation or closure of Hormuz could lead to major price surges.
• Continued volatility expected in global energy markets.

Related Reads on Tredu.com:

• Oil Outlook: Can Crude Surpass $80 on Middle East Tensions?
• How the Strait of Hormuz Affects Global Oil Prices
• WTI vs Brent: What to Watch in Volatile Energy Markets