WTI crude oil price rises as U.S. sanctions on Iran tighten supply outlook
WTI price chart showing support at $70.11 and resistance at $71.69
West Texas Intermediate (WTI) crude oil prices advanced on Tuesday, trading at $70.87 per barrel, up from Monday’s close of $70.72. Brent Crude also gained, moving from $74.32 to $74.48. The price increase follows fresh U.S. sanctions on Iran, targeting over 30 brokers, tanker operators, and shipping companies involved in Iranian petroleum trade.
The U.S. Treasury and State Departments announced the measures on Monday, as part of President Donald Trump’s policy to curb Iran’s oil exports. The move aims to prevent Iran from advancing its nuclear program, but it has also raised concerns over global supply constraints.
USOIL price dynamics (Jan 2025 - Feb 2025) Source: TradingView.
Market impact of trade policies and Russia-Ukraine talks
Despite the supply concerns, WTI’s gains remain limited as uncertainty over global trade and diplomatic developments weighs on sentiment. Trump reaffirmed his stance on 25% tariffs on Canadian and Mexican imports, signaling that the delay granted earlier would expire next week. These trade restrictions could impact global economic growth, reducing fuel demand.
Meanwhile, potential peace talks between the U.S. and Russia regarding the Ukraine conflict could lead to sanctions relief for Russian oil exports, which might increase global supply. Additionally, reports indicate that Iraq is set to resume oil shipments from its Kurdistan region, further offsetting the impact of the Iran sanctions.
Technical outlook and price levels to watch
WTI crude is currently trading cautiously at $70.93, staying just below the 50-day EMA at $71.45 and the 200-day EMA at $72.34. This positioning indicates a short-term bearish sentiment within a broader downward trend. On the resistance side, the immediate barrier stands at $71.69, followed by a stronger level at $73.16. If prices break above these levels, it could indicate renewed bullish momentum. On the downside, key support is at $70.11, with a more significant floor at $69.32. A drop below these levels may lead to increased selling pressure. The pivot point to watch is $70.66, as holding above this level will be essential for sustaining short-term bullish momentum.
With U.S. sanctions on Iran tightening supply concerns and geopolitical factors influencing sentiment, traders will closely monitor demand trends, trade policies, and upcoming U.S. economic data for further direction.
As previously discussed WTI rebounds as Iran sanctions spark supply concerns, while global trade risks limit gains.
