West Texas Intermediate (WTI) crude prices surged Tuesday as investors closely watched the escalating conflict between Israel and Iran.
Tensions intensified after Israel launched airstrikes on Iran’s nuclear facilities, triggering daily missile exchanges and heightening fears of a broader regional conflict.
President Trump left the G-7 summit early to address the situation and reaffirmed US support for Israel, calling for Iran’s “unconditional surrender” as the conflict entered its sixth day.
US officials also confirmed the deployment of additional fighter jets to the region.
Iran, OPEC’s third-largest producer at 3.3 million barrels per day, may see output disrupted.
Meanwhile, weaker-than-expected US economic data—including retail sales and industrial production —added to market uncertainty ahead of the Federal Reserve’s rate decision.
The Fed is widely expected to keep rates steady at 4.25%–4.50%, with attention focused on its economic outlook amid growing geopolitical and financial risks.
Technically, the Relative Strength Index (RSI) remains in positive territory, but a bearish divergence is forming—signalling caution as a sharp downturn could follow a rejection from the $74.00–$75.00 zone.
The Moving Average Convergence Divergence (MACD) continues to support bullish momentum, while the Average Directional Index (ADX) remains positive.
If the ADX rises above 50, it indicates a very strong trend; however, at current levels, the market may be overheated, increasing the risk of a correction.
The short-term outlook remains neutral.
Daily Chart West Texas Intermediate (WTI)
