Oil Prices Extend Gains on Iran Uncertainty and Tightening Supply Outlook

WTI crude extended its strong rally into a fourth consecutive day, driven by rising tensions in Iran and fears of potential supply disruptions. Adding to market uncertainty, President Trump recently threatened to impose a 25% tariff on any country importing oil from Iran.

Mild optimism from Venezuela, where conditions have stabilized and oil supply normalization is possible, had little impact on the broader rally.

On the day, WTI gained approximately 2.7%, breaking key technical barriers at $60 (psychological level), $60.25 (100-day moving average), $60.76 (76.4% Fibonacci retracement of $62.58–$54.87 decline), and $61.00 (round number). The price also tested the top of the descending daily Ichimoku cloud near $61.18.

While improving daily technical indicators support the upside, overextended conditions suggest bulls may pause for consolidation. Limited pullbacks are expected to provide fresh positioning for further gains, as the geopolitical environment remains fragile, with risks of escalation likely to fuel additional rallies.

Any short-term dips should find support above the broken $60 level to sustain bullish momentum. A sustained break above the daily cloud could open the way to targets at $62.24 (200-day moving average) and $62.58–$62.80 (October highs), reinforcing the continuation of the rally.

Res: 61.18; 61.40; 62.24; 62.58
Sup: 60.76; 60.25; 60.00; 59.46