WTI crude oil surges on Iran nuclear talk uncertainty and Strait of Hormuz closure

• US and Iran concluded a second round of nuclear talks in Geneva with both sides citing progress on guiding principles, though key gaps on enrichment and sanctions remain unresolved.
• Iran's partial closure of the Strait of Hormuz for military drills and an 8.5 million barrel US inventory build from the prior week's Energy Information Administration (EIA) report are pulling crude in opposite directions.

Oil prices whipsawed this week as the second round of US-Iran nuclear negotiations in Geneva dominated sentiment. Both sides reported progress on broad principles, but Iran continues to reject Washington's demand for zero uranium enrichment while the US pushes to expand talks beyond the nuclear file. Iran's Revolutionary Guard conducted live-fire drills in the Strait of Hormuz during the talks, partially closing the waterway that carries roughly 20% of global oil flows; the first such closure since the US military buildup in the region began. Weighing against the geopolitical bid, last week's EIA data showed US crude inventories rose by 8.5 million barrels, the largest weekly build in a year, while the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are leaning toward resuming production increases from April when the group meets on March 1.

Strong bullish daily candle reclaims the 200-day Exponential Moving Average (EMA) near 62.43

On the daily chart, WTI opened Tuesday's session near $62.20, climbing 3.4% on the day. The rally drove price back above the 200-day and 50-day EMAs, restoring a bullish alignment after several sessions of testing the 200-day level from both sides. The move erased the prior session's losses and pushed price action back into the upper half of the consolidation range that has held since the late-January pullback from early-year highs. The Stochastic Oscillator is stuck in the midrange zone, suggesting momentum has room to develop in either direction. Resistance sits at $65.00 and the $66.25 year-to-date high; a break above would open the door toward the $67.00 handle. Support rests at the 200-day EMA near $62.45, with a failure there exposing the 50-day EMA at $61.25.

WTI daily chart