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.