- Oil prices hold above $95 amid U.S.-Iran geopolitical tensions
- Strait of Hormuz disruptions continue affecting global oil supply flows
- WTI trades below $100 resistance, indicating uncertain market direction
- Traders brace for volatility as weekend developments could shift sentiment
Crude oil prices remained elevated ahead of the weekend, with West Texas Intermediate (WTI) hovering above the $95 mark as geopolitical tensions between the United States and Iran continued to dominate market sentiment.
Investors are closely tracking developments around the Strait of Hormuz, where ongoing blockades and military positioning have disrupted global supply flows and injected significant uncertainty into energy markets.
Despite diplomatic signals, including delegations and backchannel talks, there has been no confirmed breakthrough, leaving traders cautious and positioning for potential volatility when markets reopen.
Geopolitics, supply disruption drive price action
The U.S. blockade of Iranian-linked shipping has tightened supply conditions, with multiple tankers reportedly prevented from leaving regional ports, reinforcing concerns about restricted global oil flows.
At the same time, alternative supply routes remain limited, contributing to a widening spread between WTI and Brent crude as regional imbalances deepen.
According to market estimates, global supply remains significantly below normal levels, with disruptions continuing to ripple across energy markets even as some flows begin to adjust.
This backdrop has kept oil prices volatile, with traders reacting sharply to headlines amid a lack of clarity on whether tensions will escalate further or move toward resolution.
Market sentiment has also weakened in recent sessions, as expectations for a near-term peace deal have declined, reducing confidence in a quick normalization of supply.
Technical levels signal high volatility risk
From a technical perspective, WTI has rebounded from recent lows but remains capped below the key $100 resistance level, which continues to act as a ceiling for further upside.
A sustained move above this threshold could trigger a sharper rally toward the $104–$106 range, while failure to break higher may keep prices range-bound.
IBT SG
On the downside, immediate support is seen in the $93–$95 zone, with a break below that level opening the door for further declines toward the high-$80s. Shorter time-frame indicators suggest mixed momentum, pointing to a balanced market where neither buyers nor sellers have established clear control.
Weekend uncertainty keeps traders cautious
With geopolitical risks still unresolved, traders are bracing for potential price gaps when markets reopen, particularly if new developments emerge over the weekend.
The combination of supply disruptions, uncertain diplomacy, and technical resistance levels has created a highly reactive trading environment, where sentiment can shift rapidly.
For now, oil markets remain driven less by fundamentals and more by geopolitical headlines, keeping volatility elevated and directional conviction limited.
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