Tensions over Iran drove WTI crude 5 percent higher but reversed, with only a 1.5 percent daily gain at around $74.43.
Brent crude hit a high of $142.89, but is currently trending at 142.52 and support and resistance levels have been well built.
Markets are reacting to a U.S. strike with restraint, with traders wary despite geopolitical uncertainty in the Strait of Hormuz.
Oil markets opened with a steep jump on account of recent Iranian events. However, the early jump ran out of steam as trading settled down. West Texas Intermediate (WTI) crude jumped over 5% during the early trade on June 23, on news of heightened tensions in the Strait of Hormuz after the reported U.S. strike on Iran.
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Despite the high-geopolitics situation, oil prices dipped shortly after the opening rush. WTI is still 1.5% up for the day so far. Brent crude also kept pace with the same price movement, showing the same volatility without maintaining old highs.
WTI Crude Pulls Back Sharply After Failing to Hold Early Gains
WTI crude hit a near intraday high of $75.55 but was unable to maintain this. Price currently trades closer to $74.43. After the initial surge, sellers returned, dissipated momentum, and capped gains. The market registered a steep drop from its top, with price activity reflecting uncertainty among traders. The transitory rally indicates geopolitical risk remains on the table, but participants may await additional news before committing more strongly.
Intraday technicals show a clear retracement of the upward move, erasing nearly 80% of the initial gains. Price remains within a tight range following the drop, highlighting indecision among traders. The pullback has not violated the nearest support zone around $74.10, but sellers continue to test that level.
Brent Crude Mirrors WTI Price Behavior, Faces Resistance
Brent crude took a similar path, surging up with WTI but not managing to maintain the initial pace. Currently, it is trading slightly below its important resistance level of 142.89 at around 142.52. The 24-hour range has been defined, with support seen at $107.15.
Notably, Brent’s 30.1% increase remains a standout number, though recent hours have shown lower volatility. The BTC pairing shows a 31.2% increase, reflecting some strength in digital asset terms. Despite the broader pullback, resistance near $142.89 continues to act as a ceiling for price action.
Oil Markets Hold Steady Despite Initial Geopolitical Shock
Despite the dramatic headlines, crude oil's reaction has stayed contained so far. Market activity shows a more calculated response rather than panic-driven momentum. Traders appear to be watching for additional information before pushing prices beyond established ranges.
Although WTI and Brent showed initial spikes, their retractions have created a cautious market-environment. The future price trend is still very buoyant, but not manic thus indicating that the geopolitical events- though severe- have not yet propelled crude oil into a prolonged breakout mode.
