Crude oil prices climbed sharply Wednesday as renewed U.S.-Iran tensions revived fears of supply disruptions across the Middle East. Brent crude futures rose $2.70, or 3.2%, to $86.79 a barrel, while West Texas Intermediate futures gained $2.65, or 3.3%, to $81.91 as of 6:45 a.m. GMT.
The rally reversed part of Tuesday’s steep decline, when hopes for diplomatic progress pushed both benchmarks to two-week lows. However, sentiment shifted after the United States and Saudi Arabia struck Iran-backed groups in Iraq and the U.S. military said it intercepted Iranian missiles aimed at American forces. Iran also rejected an Oman-backed proposal involving oversight of the Strait of Hormuz.
Shipping data reinforced the supply concerns. Only eight commodity vessels passed through the Strait of Hormuz on July 28, while just one had crossed early Wednesday. Traffic through Bab el-Mandeb improved to its highest level in a week, but Houthi threats against Saudi shipping kept the Red Sea route vulnerable.
Brent Rebounds From a Major Demand Zone
The supplied four-hour Brent chart captured the contract near $83.01 before the latest price surge. Enri.hl identified demand around $80.69 to $82, noting that the lower boundary aligned closely with the one-month average and the market’s recent low.
Brent Demand Zone Source: Enri.hl (@0xWhaleHL), TradingView
The rebound has strengthened the short-term setup. On the chart, Brent must hold above the daily 200-period average near $83.17 to preserve momentum. The next resistance levels appear near $85.70 and $88.76, followed by a stronger barrier around $91.44.
Because the latest verified market price had moved above $85.70, traders may now watch whether Brent can turn that area into support. A decline below $83.17 would weaken the rebound, while a break beneath the $80.69 demand zone would restore the broader bearish trend.
WTI Consolidates After an Upside Breakout
The supplied U.S. crude spot chart shows oil breaking out overnight before consolidating near $83.02 inside a tightening triangle. Boz described the formation as a possible pause before another upside move.
WTI Breakout Setup. Source: Boz (@bozkaschi),TradingView
A clear break above the triangle’s upper boundary near $83 to $84 would strengthen the bullish case and could bring the unfilled price gap above $86 into focus. Meanwhile, a loss of support near $82.50 would weaken the pattern, with $81.20 becoming the next area to watch.
Momentum remains positive but has cooled since the initial surge. The chart’s MACD indicator remains above zero, while the relative strength index sits near neutral territory, suggesting that WTI is not yet overbought.
Inventory Data Could Drive the Next Move
American Petroleum Institute data showed U.S. crude inventories falling by about 3.3 million barrels last week. Gasoline supplies rose by 918,000 barrels, while distillate stocks increased by 355,000 barrels. A Reuters poll had projected a 1.3 million-barrel crude draw, while the supplied Investing.com calendar showed a separate forecast for a 700,000-barrel build.
U.S. Crude Inventory Forecast. Source: Investing.com
The Energy Information Administration will release the official figures at 10:30 a.m. ET. A larger-than-expected crude draw could support prices, while rising crude and fuel inventories could limit the rally.
OPEC+ will add 188,000 barrels per day in August and meet again Aug. 2. Reuters reported that the group may approve a similar September increase before pausing further additions in October, although producers have not made a final decision.
