WTI Breaks Above $90. Is the Rally Just Getting Started?

WTI crude oil extended its powerful rally on Thursday, breaking above the $90 mark for the first time in six weeks as escalating tensions in the Middle East intensified concerns over global oil supplies.

The latest advance has been driven by fears that both the Strait of Hormuz and the Red Sea—two of the world's most important energy shipping routes—could face prolonged disruptions following Iran-linked threats. As geopolitical risks continue to build, traders have further increased the geopolitical risk premium in crude prices.

Oil has now entered a new phase where geopolitics, rather than demand, is driving price action.

Unlike previous rallies fueled by improving economic expectations, the current move reflects growing concerns over supply security. Any further disruption to exports through the Strait of Hormuz could tighten global crude markets significantly, while continued threats to Red Sea shipping add another layer of uncertainty.

At the same time, rising oil prices are reviving inflation concerns, prompting investors to reassess the outlook for global central bank policy and providing additional support for energy markets.

Technical Outlook: Bulls Set Their Sights on the Next Resistance Zone

From a technical perspective, WTI has decisively broken above both the $83 resistance and the psychological $90 level, confirming a strong bullish continuation.

Holding above $90 would reinforce the breakout and shift focus toward the next major resistance around $95, where profit-taking could emerge.

Momentum indicators remain constructive, suggesting buyers continue to control the near-term trend. However, after a nearly 30% rally from the July lows, short-term volatility is also likely to increase.

On the downside, the $90 level now becomes the first key support, followed by $83, which has transitioned from resistance into a major technical floor. As long as both levels hold, the broader bullish structure remains intact.