WTI Holds $77.50 Support as Oil Risk Premium Lingers on Iran Talks

Shipping disruptions near the Strait of Hormuz continue to add cost. Some tankers have taken longer routes, adding extra time and fuel costs. The strait still handles a large share of global oil exports, and any further escalation would hit supply directly, traders said.

Technical levels are in focus. WTI found support at $77.50, the neckline of a rounding bottom pattern from June, according to technical analysts. A break below that level could open the door to $65, analysts said. On the upside, a clear move above $90 would target $100, analysts said. Brent crude has support at $85 and the 50-day moving average, with resistance at $90 and $100.

Weekly charts show oil trading in a wide range between $70 and $120, with no clear direction until the Iran situation resolves. The RSI on Brent's daily chart is above the midline, suggesting short-term bullish momentum. The price has yet to clear $90.

Oil prices are likely to remain volatile until the next round of talks or any shipping disruption near the Strait of Hormuz, traders said. WTI is expected to range between $77.50 and $90, while Brent may trade between $85 and $90.