WTI sticks to positive bias above $92.00 amid Middle East tensions

• WTI attracts buyers for the third straight day and jumps to a nearly two-week high.

• Hormuz risks counter the US-Iran ceasefire extension and support the black liquid.

• The fundamental backdrop favors bulls and backs the case for further appreciation.

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – fades an Asian session spike to the $95.80-$95.85 area, or a one-and-a-half-week top, and retreats to the lower end of its daily range in the last hour. The commodity is currently placed just above the $92.00 mark, up nearly 0.30% for the day.

Despite a temporary extension of the US-Iran ceasefire, traders remain sceptical about a durable de-escalation amid the lack of progress in peace talks. Moreover, rising conflict over the Strait of Hormuz continues to fuel worries about prolonged disruptions through the strategic waterway. This keeps geopolitical risks premium in play and continues to push Crude Oil prices higher for the third straight day.

US President Donald Trump reiterated on Tuesday that the US Navy blockade of Iranian ports will continue. Adding to this, Iran's semi-official Tasnim news agency reported that Iran’s Revolutionary Guards Navy seized two vessels and that at least three container ships were hit by gunfire in the Strait on Wednesday. This, along with a surprise draw in US crude stockpiles, offers additional support to Oil prices.

Meanwhile, the latest leg of a sharp move higher comes on the back of fake news of an attack on Tehran. The momentum fizzles out rather quickly in the absence of any major developments. This, in turn, warrants some caution for bullish traders and positioning for any further appreciation. The fundamental backdrop, however, suggests that the path of least resistance for Crude Oil prices remains to the upside.