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Key Takeaways:
*Crude oil retreats slightly after testing a key resistance level
*Profit-taking and technical correction weigh on prices after two weeks of gains
*U.S.–Iran tensions continue to support oil’s broader bullish bias
*Markets await details of Washington’s proposed sanctions against Iran
Crude oil prices retreated slightly after hitting a key resistance level, as traders took profit following two consecutive weeks of gains. The pullback appeared to be driven mainly by short-term technical correction rather than a major change in the broader fundamental outlook.
Despite the recent decline, oil’s overall bias remains supported by persistent U.S.–Iran tensions. Market participants remain cautious as the standoff around the Strait of Hormuz and surrounding regions continues to show limited signs of easing.
The United States recently said it is preparing to announce its strictest round of sanctions against Iran. Treasury Secretary Scott Bessent’s comments followed warnings from several U.S. officials, including President Donald Trump, who signaled that Washington may intensify economic pressure on Tehran.
However, the exact scope and timing of the new sanctions remain unclear. Until more details are released, traders may avoid taking aggressive directional positions, especially after the recent sharp rally in crude prices.
Overall, while oil may experience further short-term correction after reaching resistance, the fundamental backdrop remains cautiously bullish. Any stronger-than-expected sanctions or renewed escalation around the Strait of Hormuz could quickly restore upside momentum in crude oil prices.
Technical Analysis

CL-Oil, H4:
Crude oil prices are trading lower after retreating from the 86.95 resistance level, suggesting a near-term technical correction from recent highs.
Momentum indicators are turning softer, with the MACD showing increasing bearish momentum and the RSI at 51 hovering near the midline, indicating that bullish momentum is weakening while downside pressure may build.
If bearish momentum persists, crude oil could edge lower and retest the 80.80 support level, followed by 74.95 if selling pressure intensifies.
However, the broader fundamental backdrop remains supported by geopolitical risks. Market participants will continue to monitor the 86.95 resistance level, as a confirmed breakout above this zone could signal a shift back toward bullish momentum and open the path toward 93.40.
Resistance Levels: 86.95, 93.40
Support Levels: 80.80, 74.95
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