The XTI/USD chart indicates that the price of WTI crude has broken above the highs recorded on 4 and 11 February, advancing past the $66 mark and setting a new high for the month. The upward move is largely fuelled by intensifying geopolitical tensions, particularly surrounding Iran. Media reports highlight the following developments:
→ Talks between the sides have yet to produce a concrete outcome. While Tehran announced a “broad understanding” with Washington regarding the framework of a possible nuclear agreement, US Vice-President JD Vance stated that Iran has not complied with American conditions.
→ President Donald Trump has reiterated that military action remains under consideration.
Such rhetoric increases the risk that Iran could attempt to disrupt traffic through the Strait of Hormuz — a crucial artery for global oil and gas supplies. Moreover, any US intervention could potentially turn into a drawn-out campaign rather than a brief operation.
Against this backdrop of rising geopolitical risk, oil prices are edging closer to their highest levels of the year.
Technical View of XTI/USD
In our analysis of the oil chart on 12 February, we:
→ constructed a wide ascending channel (highlighted in purple) based on recent WTI price swings;
→ pointed out technical signals suggesting that bearish pressure was beginning to build.
Following that assessment, the price not only retreated to the channel’s lower boundary but also slipped below it intraday. The former support subsequently acted as resistance on 17 February.
A failed bearish breakout (marked by the arrow) later indicated that downside momentum had weakened. Taking advantage of the tense news environment, buyers regained control and drove prices higher.
The 65.20 area may now serve as support, opening the door to another test of this year’s highs. Should geopolitical tensions escalate into direct military action, traders should be prepared for the possibility of WTI extending well beyond the $66.20 level.
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