WTI Near $95 as Hormuz Blockade Tightens Supply

WTI crude traded around $95 on Friday as a U.S.-Iran standoff and a U.S. naval blockade of the Strait of Hormuz tightened supplies. U.S. forces were reported to have blocked 34 tankers, and the WTI-Brent spread widened to about $11 per barrel.

Iran sent a delegation to Islamabad but had not confirmed formal talks with U.S. representatives. Washington dispatched envoys Steve Witkoff and Jared Kushner to Pakistan to press for an agreement. Betting markets showed the probability of a peace deal declined since the prior week.

The U.S. Navy's control of the Strait of Hormuz redirected some oil flows to North American routes. The International Energy Agency estimated global flows were roughly 13 million barrels per day below normal levels. Alternative pipelines and routes were reopening slowly.

Price action was choppy. WTI fell to about $83 last Friday before a multi-day rebound that stalled below $100. The 4-hour 200-period moving average stood near $96.82 and was cited by traders as a short-term momentum gauge; a move below that level would increase downside risk.

Traders monitored technical thresholds. Immediate resistance was seen between $98 and $100, with subsequent resistance near $104 and $106–$108. Larger channel tops appeared around $117 to $120 and the 2022 spike near $120 to $124. Support levels included $93–$95, $87–$90, $82.80–$84 and $78–$80, with a low-end band near $69–$70.

Analysts warned investors: “Expect high-volatility gaps on Monday's session.” They recommended careful use of stop orders and conservative position sizing to manage gap risk. Shippers rerouted cargoes to avoid the Strait, and some buyers sought deliverables in North America, compressing available cargo in certain markets.

Market participants noted that, absent diplomatic progress, prices could remain sensitive to headlines and shipping reports ahead of the next trading session.