Oil Prices Rise as Geopolitical Risks Lift Supply Premium

Oil prices moved higher today as geopolitical tensions between the United States and Iran intensified again. Market concerns over potential supply disruptions from the Gulf region, particularly around the Strait of Hormuz, have pushed a geopolitical risk premium back into crude prices.

Bullish sentiment is also being supported by fears that further escalation could disrupt key energy export routes from the Middle East. The Strait of Hormuz remains crucial because a significant share of Gulf oil exports passes through the waterway. Any threat to shipping security could quickly increase concerns over global supply.

However, gains remain capped by worries over the global demand outlook. Traders are still assessing growth prospects in China and other major energy-consuming economies. At the same time, the possibility of renewed diplomatic efforts could limit further upside if tensions begin to ease.

From a technical perspective, Brent crude continues to show a relatively constructive structure as long as prices hold above the US$89–90 per barrel support zone. If buying momentum continues, the next resistance levels are seen around US$92, followed by US$94–95. A sustained breakout above those levels could open the door for further gains.

On the downside, failure to hold above US$89 could trigger a correction toward US$87–88, while stronger selling pressure may expose the US$85–86 area. With volatility still elevated, oil prices are likely to remain highly sensitive to fresh headlines involving Iran and the Strait of Hormuz.(mrv)

Source : Newsmaker.id