WTI Crude Oil Surges as Hormuz Crisis Fuels Supply Shock, Bulls Target $106

WTI crude oil extended gains after surging nearly 5.45% in the previous session, trading around $95.70 during Monday’s Asian session. Oil prices remain strongly supported as geopolitical tensions in the Middle East continue to escalate.

Market sentiment turned bullish after US President rejected Iran’s latest response to a proposed agreement aimed at ending the 10-week conflict. Trump called Tehran’s response “totally unacceptable,” while reports suggested Iran refused to dismantle its nuclear facilities and instead proposed transferring part of its enriched uranium stockpile to a third country.

The ongoing closure of the Strait of Hormuz continues to disrupt global energy flows, with the International Energy Agency describing the situation as the largest oil supply shock ever recorded. Additional tensions emerged after drone strikes targeted a cargo vessel near Qatar, while the UAE and Kuwait reportedly intercepted hostile drones, raising fears that the fragile ceasefire established in April could collapse.

Saudi Aramco CEO Amin Nasser said nearly 1 billion barrels of oil supply have been lost over the past two months, warning that energy markets may take time to stabilize even if supply routes reopen.

From a technical perspective, US Crude Oil has staged a strong rebound from the $90 region on the 4H chart. Price has reclaimed the key $95 support area and is now attempting to break back above the psychological $100 level.

Momentum indicators are turning bullish, with the MACD histogram moving back into positive territory and the MACD line attempting a bullish crossover, signaling renewed buying pressure.

Key levels to watch:
• Immediate resistance: $106
• Major resistance: $113
• Key support zones: $95 and $90

As long as WTI holds above $95, bullish momentum could continue toward the $106–113 range. A sustained breakout above $101–102 may accelerate upside momentum further, while failure to hold current levels could trigger another pullback toward support.

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