WTI Price Forecast: Likely revisit 50-day high above $92 on renewed US-Iran attacks

West Texas Intermediate (WTI), futures on NYMEX, trade 3.2% higher at around $81.00 during the early European trading session on Wednesday. The oil price bounces back strongly as joint attacks by the United States (US) Central Command (CENTCOM) and Saudi Arabia on Iran-backed military groups in Iraq have renewed fears of a prolonged global energy supply disruption.

Late Tuesday, the Saudi Ministry of Defence reported that it carried out targeted strikes against Iran-aligned armed groups in Iraq, in coordination with US CENTCOM. CENTCOM revealed that these attacks were in retaliation for planned attacks on US forces and Saudi oil facilities in the Eastern Province and Riyadh regions.

Meanwhile, subdued traffic near the Strait of Hormuz, a vital passage to almost 20% of global energy supply, indicates that the global energy supply will remain squeezed. Oil tankers fear using the Hormuz route as Iranian forces are attacking them as they pass through.

Earlier, the Iranian Islamic Revolutionary Guard Corps (IRGC) said that three oil tankers were 'struck and stopped' after ignoring warnings in the Hormuz.

Later in the day, investors will focus on the Federal Reserve’s (Fed) monetary policy decision. According to the CME FedWatch tool, traders see a 69.5% chance that the Fed will leave interest rates unchanged in the range of 3.50%-3.75%.

WTI technical analysis

WTI US Oil trades higher at around $80.93. The oil price strives to return above the 20-day Exponential Moving Average (EMA), which is at around $80.37.

The 14-day Relative Strength Index (RSI) near 51 points to neutral-to-positive momentum, hinting that the latest rebound could extend while price stays anchored above the short-term EMA.

On the downside, immediate support is defined by the July 28 low at $77.16, followed by the July 13 low at $72.53. Looking up, the odds of the oil price revisiting the 50-day high at $92.25 would strengthen once it extends its recovery above the July 27 high at $84.58.