Crude oil prices climbed again Tuesday as renewed U.S.-Iran fighting revived fears of disruptions to Gulf production and shipments through the Strait of Hormuz. Brent crude futures rose $1.05, or 1.2%, to $91.54 a barrel at 0455 GMT, while U.S. West Texas Intermediate gained $1.27, or 1.5%, to $87.03, putting both benchmarks near technical levels that could determine whether the rally extends toward $100.
The advance followed gains of 2.7% for Brent and 2.8% for WTI on Monday. Oil’s geopolitical premium has returned after President Donald Trump threatened further strikes against Iran following the first direct exchange of attacks between the two countries in about a month.
Brent Crude Nears Breakout as $100 Returns to Focus
Brent’s broader price structure has tightened after a recovery from roughly $72 in July. A strong rebound toward the low-$90s has brought crude back to descending resistance, creating a potential breakout point after several weeks of narrowing price action.
Brent Crude $93 Triangle Breakout Setup. Source: Michael J. Kramer (@MichaelMOTTCM) on X
The supplied Brent cash chart showed price around $93.11 on Aug. 31, testing the upper boundary of a contracting formation. Momentum has also improved, with the displayed 14-day RSI near 55, above the neutral 50 level but still well below overbought territory.
Michael J. Kramer said Brent appeared positioned for a move above $100. Technically, sustained strength above roughly $94-$95 would provide stronger confirmation of that scenario. The $100 area would then become the next major psychological barrier, while failure to hold the high-$80s would weaken the developing bullish structure.
WTI Tests $87.50 With $95-$100 Zone in Sight
WTI is approaching a similar decision point after recovering sharply from its latest pullback. The $87-$89 region stands immediately overhead, while the supplied setup identifies substantially higher extension levels if buyers force a breakout.
WTI Crude $87.50 Breakout Toward $95-$100. Source: Viv (@diepthaolong) on X
Viv identified $87.50 as the key trigger and argued that a break could accelerate a move toward $95-$100. The setup marks intermediate resistance near $89.22 and $94.68, followed by approximately $98.96 and $103.31.
That path remains conditional. WTI would first need to establish support above $87.50 rather than briefly trade through it. The chart places more substantial downside support around $80.50, making that area an important invalidation level if the current recovery fails.
Strait of Hormuz Keeps Supply Premium Elevated
The technical pressure is being reinforced by worsening shipping conditions. Only about five visible commodity vessels transited the Strait of Hormuz on Monday, compared with a 10-day average of roughly 14, and none were liquid tankers. A tanker also reported being struck by three projectiles Tuesday while leaving the strait, although no casualties or environmental damage were reported.
The waterway handled roughly one-fifth of global oil supplies before the conflict, making continued disruption a major risk for Brent and WTI. U.S. Strategic Petroleum Reserve inventories also fell 3.1 million barrels last week to 286.6 million barrels, reducing another potential supply cushion.
OPEC+ is adding about 188,000 barrels per day of production in September, completing the rollback of a 1.65 million-bpd voluntary cut, but war-related production and shipping constraints have limited the effect of previous increases. The group’s core producers are scheduled to meet again Sept. 6.
For now, Brent holding above $90 and WTI clearing $87.50 would keep $95-$100 in play. A renewed easing of Gulf tensions or failure at those resistance levels could quickly remove part of the geopolitical premium and return attention to weak Chinese crude demand.
