Oil Rally Tests $90 as Iran Blockade Tightens Hormuz Flow

The $80 level is a critical technical barrier. A confirmed break above $81 would likely open a path toward $90 to $95, traders said. WTI formed an inside-day candle Wednesday, indicating price compression below $81. A break above Wednesday's high could trigger a quick push toward $90, with the $80 to $81 area turning into support. A failure to clear $81 and a drop below $70 would shift the outlook lower.

On the 4-hour chart, WTI shows a strong bottom formation below a descending trendline. Immediate resistance sits at $87, defined by the trendline stretching from April 2026 highs.

Brent crude shows a similar pattern, rebounding from the $72 to $74 support zone. The contract is consolidating between the 50-day and 200-day SMAs. As long as $81 holds as support, the next move targets $90. A break above $90 would open the door to $100 and potentially $120, according to technical analysis.

The weekly chart for Brent shows strong support at the descending trendline near $68. The price has already recovered above the 50-week and 200-week SMAs, signaling a quick recovery toward the $100 region.

Rising Middle East tensions and new supply risks continue to support prices. Traders are watching the Strait of Hormuz, further attacks in the area, and key technical breakout levels. WTI could rally to $90-$95 if it clears $81 and $87. Brent could reach $90 as long as $81 holds. A failure at those support levels would weaken the bullish case. Rising energy costs also risk feeding inflation and slowing global demand.