WTI Oil climbs as US-Iran standoff keeps Middle East supply risks elevated

West Texas Intermediate (WTI) Oil reaches its highest level in more than three weeks on Wednesday as supply risks in the Middle East continue to underpin prices. At the time of writing, the US benchmark trades around $85.20 per barrel, up nearly 1% on the day.

Meanwhile, Data from the US Energy Information Administration (EIA) showed that crude Oil inventories rose by 4.405 million barrels in the week ending August 14, while markets had expected a decline of 0.6 million barrels.

There are still no signs of negotiations to reopen the Strait of Hormuz after the 60-day memorandum of understanding between the United States (US) and Iran expired on Monday. Tehran maintains that the waterway will stay closed until Washington meets the conditions of the interim agreement.

Separate discussions between Iran and Oman over the joint management of the Strait have yet to produce meaningful progress toward reopening the waterway.

US President Donald Trump said in a Truth Social post on Tuesday that “there are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran,” adding that the US naval blockade “remains in full force and effect.”

However, Trump told reporters on Wednesday that negotiations with Iran may take place “at some point.” He also said that many vessels passed through the Strait of Hormuz overnight.

Despite Trump’s comments, actual shipping activity remains limited. Kpler data showed that only six commodity vessels crossed the Strait on Tuesday, down from nine on Monday and below the recent daily average of eleven, according to Reuters.

Technical Analysis

The near-term tone is bullish as WTI holds above the 21-day Simple Moving Average (SMA) around $82 and the 200-day SMA at $76, while only modestly capped by the 100-day SMA at $86 overhead.

The Relative Strength Index (RSI) on the daily chart at 58 stays in positive territory without reaching overbought extremes, and the Moving Average Convergence Divergence (MACD) indicator remains above zero, which together hint at constructive upside momentum while acknowledging nearby resistance.

On the topside, a clear break above the 100-day SMA near $86 could open the door toward the July high of $92.25. On the downside, initial support emerges at the 21-day SMA around $82, with deeper protection from the 200-day SMA near $76, where buyers would be expected to reappear if a corrective pullback unfolds.