Oil prices have pulled back from session highs after reports that the US may provide military protection for vessels traveling through the Strait of Hormuz. Earlier fears that tankers would be unable to offload cargo — potentially filling storage capacity and forcing production cuts — helped fuel a sharp rally in crude.
WTI climbed to a high of $77.98, pushing through a key swing resistance zone between $77.10 and $77.57 in the process. That break signaled strong upside momentum at the time. However, the rally has since reversed sharply.
Crude is currently trading near $74.60 — still up $3.60 on the day, or roughly 5% — but well off the highs. The shift in tone suggests traders are reassessing the immediacy of supply disruption risks.
From a technical perspective, the 5-minute chart shows price falling back below Monday’s high at $75.33. That level now becomes a near-term bias barometer:
• Staying below $75.33 keeps sellers in play and suggests the earlier breakout may prove temporary.
• Moving back above would give buyers renewed confidence and open the door for a retest of the $77.98 high.
On the downside, the next key target comes in near $72.50 — the 38.2% retracement of the move from the February 26 low at $63.60 to today’s high. A break below that level would shift attention toward the 50% midpoint at $70.79, which would represent a deeper correction of the recent surge.
In short, geopolitics sparked the rally — but now technical levels are defining the next directional battle.
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