WTI crude oil futures settle at $85.01 amid sanctions and inventory rises

WTI crude oil futures settled at $85.01, marking a decline of $2.05 or 2.35% for the day. The price drop was influenced by profit-taking following previous gains and market reactions to U.S. announcements regarding additional sanctions against Iran. While the U.S. aims to isolate Iran economically, the initial measures did not include immediate secondary sanctions on countries trading with Iran, which mitigated fears of a sudden disappearance of Iranian crude from the global market. Additionally, Iran continues to export oil to China.

Other factors pressuring prices include rising U.S. inventories and softening demand expectations. Recent EIA reports showed a 4.4 million barrel increase in U.S. commercial crude inventories, contrary to expectations of a draw. Furthermore, both the IEA and OPEC have recently lowered their oil-demand forecasts for 2026.

Technical analysis indicates a neutral to cautiously bullish recovery structure on various timeframes. Traders are monitoring key support levels between $83.80 and $84.50, with potential upside targets identified near the $91.50–$92.50 range if current momentum holds. Geopolitical tensions involving Iran and potential disruptions in the Strait of Hormuz remain critical fundamental factors for future price volatility.