Oil prices climbed during the Asian session after the US military announced a complete blockade of the Strait of Hormuz on Tuesday. The move tightened supply concerns and cast doubt over the next round of negotiations with Iran. As a result, US benchmark West Texas Intermediate (WTI) surged by around $4, recovering earlier losses and approaching the $89.00 level.
Earlier, WTI had dropped nearly 8% over the past two days, hitting a three-week low of $84.86 amid speculation that the US and Iran were maintaining communication to restart peace talks. Those expectations were later reinforced when US President Donald Trump indicated that negotiations could resume within the next two days.
From a technical standpoint, WTI remains under bearish pressure within a broader sideways channel. Support near $84.50 is currently holding the downside.
On the 4-hour chart, indicators continue to signal weakness. The Relative Strength Index (RSI) has bounced from oversold levels but remains below 50, while the Moving Average Convergence Divergence (MACD) still shows a widening negative histogram, reflecting weak momentum.
A decisive break below $84.46 could open the door for a deeper correction, with potential targets at the psychological $80.00 level and the March 10 low around $76.00. On the upside, resistance is seen at the weekly high of $98.10, followed by the April 6–7 highs near $106.28, and the March 9 peak at $113.16.
