WTI Oil Rebounds on Iran-Israel Tensions, Faces $72.00 Resistance Barrier

WTI Oil Recovers on Geopolitical Tensions, Struggles to Break Above $72.00

West Texas Intermediate (WTI) crude oil staged a cautious rebound on Tuesday, with prices climbing from Monday’s low near $68.00 to hover just below the critical $72.00 resistance level. While upward momentum is still present, the rally appears to be losing steam as geopolitical risks are being counterbalanced by uncertainty surrounding global production policy.

Middle East Tensions Rekindle Supply Disruption Fears

Concerns about escalating Iran-Israel tensions have injected fresh fear into the energy markets. With potential supply disruptions back in focus, bearish pressure has been temporarily capped. The geopolitical standoff is providing near-term support to oil prices, despite broader macroeconomic headwinds.

Russia’s Novak Urges Rethink on OPEC+ Output Plans

Russia's Deputy Prime Minister Alexander Novak has added further intrigue by encouraging the OPEC+ alliance to reconsider their previously discussed production hikes. Markets are interpreting this as a sign of internal divergence within the group, raising uncertainty about the direction of oil supply in the second half of 2025.

Technical Picture: WTI Eyes $72.00 Breakout

Technically, WTI crude is now trading 12% above its May high, signaling recovery strength. However, the $72.00 mark remains a key hurdle, with price action showing hesitation around this level. A sustained break higher could pave the way toward $74.50 and potentially $76.00, while rejection may invite a pullback toward $70.00 or $68.50.

Conclusion

Oil traders are keeping a close watch on both geopolitical developments and OPEC+ output decisions. While the near-term bias favors the upside due to elevated risk sentiment, a confirmed break above $72.00 is needed for the bulls to gain firmer control.