Oil prices rebound after Iran dismisses Trump’s peace talk claims as “fake news”

WTI crude oil rebounded above $90 per barrel on Tuesday, recovering from Monday’s sharp decline of around 10% that drove prices down to $84.50, the lowest level since March 11. The selloff followed President Donald Trump’s announcement of a peace deal with Iran and a delay in US military action targeting Iran’s energy sector, which triggered a strong negative reaction across markets.

Market sentiment shifted again after Iran dismissed Trump’s announcement as “fake news,” claiming it was aimed at stabilizing financial markets. At the same time, renewed overnight attacks on Israel added to geopolitical tensions. Still, the limited nature of the rebound suggests that markets need more time to fully digest the developments and establish a clearer directional bias.

The renewed escalation continues to fuel concerns about potential supply disruptions, despite the temporary relief provided by Monday’s sharp drop, which pushed prices away from the key $100 level but keeps the possibility of a stronger recovery in play.

From a technical standpoint, the daily outlook remains supportive. Most moving averages are still in a bullish configuration, including the formation of a 100/200 DMA bull cross, while momentum remains firmly positive. Additionally, the daily Tenkan-sen has crossed above the Kijun-sen, reinforcing bullish signals, although further confirmation is still required.

A daily close above $90 is seen as the minimum requirement to stabilize the outlook. A sustained move above the $93.00 zone (former range floor and 50% retracement of Monday’s drop), followed by a break above the 10DMA at $94.25, would be needed to re-engage bulls and shift focus back toward the $100 level.

On the downside, repeated closes below $90 would keep bearish risks in play and leave the market vulnerable to further weakness.

Res: 91.05; 92.26; 93.00; 94.25
Sup: 89.11; 88.54; 86.72; 84.50