WTI and Brent Hold 200-Day EMA as Gulf Tensions Keep Oil Range-Bound

WTI crude oil pulled back on Thursday before turning higher, holding support at the 200-day exponential moving average for a second consecutive session. Brent crude bounced from the $85 level, a psychologically significant area also backed by the 200-day EMA, traders said.

The move extends a range-bound pattern that has taken hold as Persian Gulf tensions keep the market in a wait-and-see mode. "Being range-bound makes sense because traders are somewhat bullish in the sense that missiles aren't flying, but there are still questions about where we are going in the Persian Gulf," said Chris, a proprietary trader with more than 20 years of experience and senior analyst at FXEmpire.

WTI's 200-day EMA has acted as a floor since the initial bounce on Wednesday. The indicator is widely watched by technical traders for support. Brent's defense of $85, a large, round number reinforced by the same moving average, suggests buyers are stepping in near that level, Chris said.

To the upside, the last swing high in Brent was near $95. Whether that marks the top of the current range remains unclear. "Unfortunately, I think this is a market that's just stuck by the latest headlines," Chris said. "Those headlines can come out at any given time, so very difficult place to live right now is the oil market."

Crude oil's resilience at these support levels comes amid elevated uncertainty over the trajectory of U.S.-Iran relations. A resolution could trigger a sharp move lower, while any escalation would likely push prices back toward recent highs. For now, the market is driven by headlines that can shift at any time.