WTI and Brent crude rally toward $80 as Iran risk returns

Oil prices surged as renewed geopolitical tensions with Iran threatened supply through the Strait of Hormuz, pushing both benchmarks toward the $80 resistance level.

WTI crude rose toward $80 a barrel and Brent climbed to $84.60 as renewed Iran tensions threatened supply through the Strait of Hormuz, reversing a recent decline driven by a preliminary US-Iran deal that had cooled oil markets.

"The market is repricing geopolitical risk after the initial deal-driven selloff went too far, too fast," said Omar Tariq, senior energy analyst at Edgen. "Shipping lanes remain disrupted and insurance premiums are still elevated."

WTI crude traded near $80.70 after breaking below the $87 support level earlier this week, with the decline halted by the triangle pattern floor between $80 and $120 that has contained prices since March 2026. Brent crude fell to $84.60 after failing at the $100 resistance, with the relative strength index approaching oversold territory.

The next price direction hinges on whether the US-Iran preliminary deal becomes permanent or collapses. If the Strait of Hormuz reopens fully and shipping traffic normalizes, Brent could drop below $80. But if Iran imposes new conditions such as tolls, or if insurance risks persist, prices could rebound from the $80 support zone.

Strait of Hormuz Remains the Flashpoint

The Strait of Hormuz transports approximately 20 percent of global oil and LNG imports, making any disruption to shipping there a direct threat to supply. Ship tracking data confirms very little shipping activity through the waterway, with many tankers still stuck in the Gulf. Shipping companies face elevated insurance premiums and threats from drones and potentially from mines, according to the data.

Oil production and refining plants may require time to resume full production after any reopening, allowing supply flows to pick up only gradually. This gradual recovery dynamic could help maintain prices above their support levels even if a truce holds.

Technical Levels in Focus

WTI crude's immediate short-term resistance remains $87, while the immediate support sits at $80. A break below $80 would likely push WTI toward $77 to $78. Conversely, a rebound from $80 could drive prices back toward $87, and a break above that level would open the path toward $100.

For Brent crude, the $80 to $82 zone represents the next key support area where a strong rebound may develop. If the rebound from $82 materializes, the next resistance will likely be $90. The RSI is approaching oversold on the weekly chart, suggesting a bounce could occur at any time.

The strong drop from $120 in WTI crude earlier this year was driven by technical resistance on the monthly chart, defined by a descending channel pattern that has formed since the July 2008 highs. The price touched this resistance for the third time since 2008 before reversing, a pattern that historically signals further downside risk.

The last time oil prices experienced a comparable geopolitical shock in the region — during the 2019 attacks on Saudi Aramco's Abqaiq facility — Brent crude spiked nearly 15 percent in a single session before giving back gains within weeks as supply proved more resilient than feared. A similar pattern of volatility followed by stabilization could repeat if the current tensions de-escalate.

This article is for informational purposes only and does not constitute investment advice.