WTI Price Forecast: Hormuz uncertainty widens scope for further upside towards $113

West Texas Intermediate (WTI), futures on NYMEX, gives up its early gains after posting a fresh over seven-week high at around $107.35 and flattens to near $104.85 during the European trading session on Thursday.

The Oil price is broadly upbeat as United States (US) President Donald Trump has warned of a prolonged blockade on Iranian sea ports after rejecting Iran’s proposal, which consisted of the reopening of the Strait of Hormuz, a vital passage to almost 20% global energy supply, Bloomberg reported. Trump added that the naval blockade of Iran will continue until Washington secures a deal with Tehran to address the country’s nuclear program.

In response, Iran has warned of "unprecedented military action" against continued US blockading of Iran-linked vessels.

The prolonged Hormuz closure has prompted an energy supply crisis, undermining currencies from economies that rely on oil imports to meet their energy needs.

Meanwhile, comments from the Federal Reserve’s (Fed) policy announcement on Wednesday, pointing to holding interest rates at their current levels for now, have raised concerns over the oil demand outlook. Fed Chair Jerome Powell said in the press conference on Wednesday that the “current policy stance is appropriate,” and risks to both inflation and the economy have increased.

WTI technical analysis

WTI US Oil trades flat at around $104.82 at the press time, maintaining a bullish near-term bias, as price holds well above the 20-day Exponential Moving Average (EMA) at roughly $94.60, which now lies far below spot and underscores the strength of the latest advance.

The Relative Strength Index (RSI) around 64 suggests firm but not yet overbought upside momentum, hinting that buyers retain control despite the market having extended sharply away from its mean.

With no nearby moving-average supports under the current price, the market remains in a stretched phase where any pullback toward the 20-day EMA near $94.60 would be watched as a potential area for dip-buying interest rather than a structural break. On the topside, the oil price will likely extend its advance towards the multi-year high of $113.28 posted on March 9.

(The technical analysis of this story was written with the help of an AI tool.)