Oil Price Forecast: WTI and Brent Rise as U.S.-Iran Deal Hopes Fade

Oil prices remained near one week high on Tuesday as optimism about a U.S.-Iran peace deal weakened. WTI oil has reached near the $82 while Brent oil remains above the $90.50. Both benchmarks were up over 5% on Monday, responding to President Donald Trump’s call for compensation from Iran as part of any agreement. His demand increased market uncertainty and pushed the oil prices higher. The traders kept risk premium on oil prices as future oil supplies might be at risk of further disruption from the region.

The supply picture was also worsened as Saudi Aramco pushed back the restart of its 400,000 bpd Jazan refinery. Insurance costs have increased and some ships have been diverted from longer routes due to ongoing risks in the Strait of Hormuz and Bab el-Mandeb. The exports via Hormuz dropped to 3 million bpd for the week that ended August 7 from 4.4 million bpd a week earlier. These disruptions may help to maintain the tightness in global energy flows and help to keep oil prices high in the short run. But any progress towards the peace deal could quickly bring the oil prices down.

WTI Crude Oil Forecast as Prices Target $92 and $100

The weekly chart for WTI crude oil shows strong volatility in oil prices below the $120 region. The prices have been trading between $60 and $120 during the past few months following the U.S.-Iran war.

Since oil prices reached a low of $67 in June 2026, they have again been attempting to rally toward the $100 area. Last week, prices produced a low at the short term support of $74 and recovered above $80.50, which indicates positive momentum toward the $92 region.

On the other hand, the RSI is also attempting to recover above the midline this week. If the RSI moves back above the 50 level, it will likely increase the possibility of a strong rally toward the $100 area.

The short term price action for WTI crude oil also shows that prices have formed a constructive pattern above $67 in the form of a cup and handle pattern. A break above $97 will confirm the cup and handle formation and increase the likelihood of strong rally toward the $120 area.

However, as long as the price remains below $97, it will likely show strong consolidation. The immediate resistance for WTI crude oil remains at $87. A break above $87 will push the price toward $93.80. A break above $93.80 will push the price toward the $97 area.

Brent Crude Oil Forecast as $92 Breakout Comes Into Focus

The daily chart for Brent crude oil shows strong and constructive price action above the 50- and 200-day SMA and the price is now approaching resistance at $92. A break above $92 will likely push Brent crude oil toward the $100 region. On the other hand, a break above $100 will likely push the price toward $120. As long as Brent crude oil holds the $81 support, it will likely continue to rally higher in the short term.

Despite the strong consolidation in Brent crude oil over the past few months, the overall price structure remains strongly bullish. This bullish construction shows that Brent crude oil may push to $127 and $200 area after a few months of consolidation. This rally is also supported by the RSI on the monthly chart. When the RSI hit the midline, the Brent crude oil hit the key level of $72 in June. The rebound above the key level and the RSI above the midline indicate positive momentum in Brent crude oil.

Oil Price Outlook Remains Bullish as Supply Risks Increase

Oil prices are supported by rising supply risks and fading hopes for U.S.-Iran peace deal. The lower exports through the Strait of Hormuz and the delayed restart of Jazan refinery may keep the market tight in the short term. WTI may rally to $87 and $93.80 if the positive momentum continues. Brent may also test $92 and $100 while holding above $81. But the progress toward peace or reopening of key shipping routes could ease supply concerns and push oil prices lower.

Read more: Iran-Oman Talks Push WTI to $75 as Brent Tests $80