At the time of preparing this material, West Texas Intermediate (WTI) crude oil was priced near $84.26 per barrel, showing a daily increase of 2.6%, as concerns about global oil supplies continue to support prices at elevated levels despite hopes for a diplomatic resolution to the situation in the Middle East.

The geopolitical factor remains the dominant driver of the market amid ongoing U.S. airstrikes on Iranian territory for the tenth consecutive day. On Monday, U.S. President Donald Trump reiterated that Tehran would pay for the deaths of three American servicemen, while Iran's Islamic Revolutionary Guard Corps (IRGC) reported strikes on several U.S. military facilities in Bahrain and Kuwait.

Tensions have escalated after the Yemen-based Houthi rebels, supported by Iran, announced a maritime embargo against Saudi Arabia in the Red Sea. This initiative has heightened risks for regional energy flows, adding to existing threats to shipping through the Strait of Hormuz—a strategically critical node for global oil exports.

At the same time, market participants continue to weigh the probabilities of a diplomatic resolution to the standoff between Washington and Tehran. While a reduction in geopolitical tension could limit further increases in oil prices in the short term, the dominant factor remains concerns about disruptions to global supplies.

From a technical standpoint, oil prices have surpassed the 50-day SMA, aiming for the 100-day SMA. Oscillators are mixed, indicating that bulls still lack sufficient strength for substantial growth. To take control of the market, bulls need to break through the 100-day SMA. Support is provided by the 50-day EMA around $80.60, and the next level of support will be the round figure of $78.00. However, as long as the Relative Strength Index (RSI) is directed upward in positive territory, bulls have the advantage.