Oil Price Forecast: WTI and Brent Target $90 as Hormuz Risks Rise

Oil prices continue to rally on Tuesday as U.S. President Donald Trump announced new shipping fees in the Strait of Hormuz. The U.S. will impose 20% fee on all traffic transiting the route. President Trump also said that he intends to reimpose blockade on Iranian ports that are located near the Strait. The actions increased concerns of new oil supply disruptions and pushed the prices higher from the support zones.

The oil market responded quickly to these geopolitical issues. WTI oil increased by 13.80% in July and Brent oil increased by 14.75%. These shipping costs could further contribute to the crisis and increase the risk of military action. Citigroup also warned that Iran could delay negotiations until the U.S. midterm elections. This could keep oil prices higher for longer.

WTI Oil Price Forecast: Breakout Targets $88 and $100

The short-term outlook for WTI crude oil remains bullish as the price has broken the descending trendline at $77. This breakout above the red descending trendline indicates that the price will likely push toward the resistance at $88. This resistance is measured from the descending channel pattern that is stretching from the April 2026 highs.

A break above $88 will likely push WTI crude oil toward $100. But a recovery back below $70 will likely trigger another drop in oil prices toward $60. But the positive price action since June indicates that the recovery in oil prices may continue.

The oil price has also formed a bottoming action since June 2026. This indicates that prices may continue to rally in the short term. This rebound in WTI oil is also due to the strong long term support at $66.

This support is measured from the descending trendline that stretches from the September 2023 highs. The support region is highlighted in green in the chart below. The rebound from this level indicates that prices may continue to rally toward the $85 to $90 area.

This rebound is also due to the extremely oversold condition in the short term as seen in the RSI. The RSI has recovered above the midpoint, which indicates that short term positive momentum may continue toward the $85 to $90 area.

Brent Oil Price Forecast: Break Above $81 Opens the Way to $90

The daily chart for Brent crude oil also shows that the price found strong support in the $72 to $74 region. The price rebounded higher and broke above the $81 area. The breakout above $81 and the recovery above the 200-day SMA suggest that the price may rally toward the $90 region in the short term.

But the price is now facing resistance at the 50-day SMA near $88, but the recent rebound from support highlights strength.

The importance of the current support zone is highlighted by the weekly chart, which shows that the price rebounded from the $72 area and recovered above the 50- and 200-day SMAs.

This indicates that the important resistance for Brent crude oil is again the $100 area. A break above this level will likely push Brent crude oil above $100.

Bottom Line

The escalation of the Middle East crisis keeps the oil prices strong. WTI oil remains strong and is looking to build on its positive momentum towards the $88 area. Brent oil also shows some positive momentum towards the $90 region. A break above $90 will indicate a strong rally to $100. The short term direction for oil prices remains strong as the prices have formed support at the critical support zones.

Read more: WTI and Brent Eye $80 Breakout as Iran Risk Returns