WTI Crude Crashes 1.2% to $75.50: Hormuz Shipping Deal Triggers Sharp Bear Reversal

NYMEX WTI futures trade 1.2% lower near $75.50 during Monday’s Asian session, wiping out early gains to plunge deep into negative territory. The brutal pullback is driven by landmark progress in weekend US-Iran diplomatic talks hosted in Switzerland, which outline a formal 60-day framework to seal a full peace accord.

Iranian Foreign Minister Abbas Araghchi told CNBC negotiations delivered “great progress”. Tehran secured landmark concessions: blanket waivers for oil and petrochemical exports, the removal of US naval blockades on Iranian ports, partial release of frozen national assets, plus a large-scale regional reconstruction initiative.

Traders attach outsized weight to Iran’s positive remarks, after the nation threatened to shut down the Strait of Hormuz just days ago amid ongoing Lebanon hostilities. US Vice President JD Vance also confirmed major strides were made during bilateral negotiations.

Qatar and Pakistan, acting as joint mediators, released an official joint statement. A cross-party high-level committee has signed off on a binding roadmap to finalise a comprehensive deal within 60 days, with technical expert talks set to kick off without delay. An Iranian foreign ministry spokesperson later confirmed negotiators locked in a permanent transit mechanism to guarantee unimpeded passage for all commercial tankers through the vital Hormuz waterway.

WTI Crude Technical Analysis

source：tradingviews

WTI hovers around $75.50 with a dominant bearish short-term setup, trading far below the critical 20-day EMA at $84.05. Any bounce off current lows is merely corrective, not a trend shift. The RSI(14) reads roughly 33, signalling persistent downside momentum still holds sway.

Key Resistance Zones

The major overhead hurdle sits at the 20-day EMA around $84.05. Bulls need to recapture this level to neutralise bearish pressure and unlock a meaningful recovery targeting $90.

Immediate downside support lands at the June 18 swing low of $72.76. A decisive break beneath this level will open a steep slide toward pre-conflict price territory near $67.20.