Oil Hits $79 as Iran Deal Collapses: What's Next for WTI and Brent?

President Donald Trump said the interim deal with Iran was over. Oil prices jumped. Brent crude hit $79 a barrel. WTI crude rallied from $68 toward the $78-$80 resistance zone. The move reintroduced a risk premium that traders had priced out when the deal was in place.

The spike matters beyond oil markets. Higher crude prices feed into fuel costs and transportation expenses. That makes the inflation picture harder for central banks. Bonds and gold sold off. The oil rally was the catalyst. The logic is straightforward: if oil stays elevated, the Fed and other central banks have less room to cut rates.

The dollar was mixed. The Canadian dollar and Norwegian krone gained on the oil link. The yen weakened as risk appetite shifted. The oil spike pushed bond yields higher.

WTI and Brent Test Key Resistance Levels

The weekly chart for WTI shows a rebound from strong support near $69. The immediate resistance sits between $78 and $80. That zone is defined by the May 2026 highs and a descending trendline that has capped rallies for months. A break above $80 would target $89, then $100. The 4-hour chart shows the rebound from $68 was expected. Muhammad Umair, founder of Gold Predictors, said the oversold levels on the 4-hour chart set up the bounce. The RSI is now extremely overbought, which suggests the price may consolidate before the next leg higher.

Brent crude shows a similar pattern. The daily chart triggered a rebound from the $72-$74 region. Resistance at $81 is defined by a trendline from the June 2025 highs. A break above $81 would open a run to the 200-day SMA at $83, then $90. The monthly chart shows the rebound started from the key $70 level, with the RSI consolidating around the midline. Brent may trade in a $70-$120 range for the next few weeks, depending on headlines.

The uncertainty is real. Oil is now driven by headlines from the Gulf and by inflation fears, not by traditional supply-demand fundamentals. Until WTI clears $80 or Brent clears $81, the market remains in a range. A break above those levels would signal a shift in the trend. A failure to break would keep the descending trendline intact.

The next catalyst is any new development in US-Iran relations. Traders are watching for further statements from the White House or any disruption to tanker traffic in the Strait of Hormuz. Until then, oil prices will swing on headlines.