WTI Crude Oil (USOIL) Hits $64.18 on Iran Sanctions, Tariff Shift

At the heart of this latest push: geopolitical tension. The US Treasury Department sanctioned Iranian shipping executive Seyed Asadoollah Emamjomeh, accusing him of orchestrating the sale and export of hundreds of millions of dollars of Iranian crude and LPG through a secret international network. That has revived supply concerns, especially in already tight energy markets.

And adding fuel to the fire, the American Petroleum Institute reported a 4.6 million barrel decline in US crude inventories last week – way above the consensus estimate of 800,000 barrels.

Key Drivers Behind the Rally

• US sanctions on Iranian crude exporters reignite supply worries

• API reports 4.6M barrel decline in US crude stocks

• Trump signals he may ease China tariffs and cool Fed rhetoric

Trump Tones Down—and Markets Cheer

In a surprise move, President Donald Trump dialed back his aggressive tone last week. After publicly criticizing Fed Chair Jerome Powell and threatening to fire him, Trump has since walked that back. He also hinted that he may lower tariffs on Chinese imports if a deal is reached – a small but welcome signal for markets worried about trade and inflation.

At a JPMorgan investor forum, Treasury Secretary Scott Bessent said progress on US-China trade was slow but possible. That has eased concerns about energy demand, especially given the state of the global economy.

“Trump’s pivot, even if temporary, has given the market a reason to breathe,” said Priyanka Sachdeva, market strategist at Phillip Nova. “Add to that lower inventories and it’s enough to get bullish.”

Technical Outlook: $65.67 Is the Level to Watch

On the charts, WTI is at the door of a major resistance zone near $65.67—the 61.8% Fibonacci retracement from the recent decline. A close above this level could take us to $67.16 and then $68.51.

• Support: $63.65 (50% Fib), $62.00

• Resistance: $65.67, $67.16, $68.51

• 50-Period EMA: $62.60

• MACD: Bullish, momentum building

Trade Setup

• Option 1: Buy the break above $65.67 on volume

• Option 2: Buy the dip near $63.65 if price holds

• Stop Loss: $62.00

• Targets: $67.16 and $68.51

Bottom Line

With geopolitics heating up and US supply tight, oil has fundamental support. But this is a fragile market—success depends on follow through, especially if Trump’s pivot holds. For traders, the play is clear: wait for a clean break above $65.67 or a strong bounce off support before getting in.