Oil Rises for 3rd Day—Are Markets Fearing "Hormuz"?
Oil prices rose for a third day after Donald Trump warned Iran to reach a nuclear deal or risk military action. WTI approached $64/barrel, extending gains after rising 1.3% and closing at its highest level since late September, as the market re-introduced geopolitical risk premiums into prices.
While global supply issues remain a brake, Middle East headlines are providing additional fuel. The concerns are most pronounced in the options market: traders are paying higher prices for long-dated bullish calls as protection if the conflict escalates. The risk focus is clear—the Middle East accounts for about a third of global supply, and an escalation could impinge on the Strait of Hormuz, a vital shipping route for global oil and LNG. (az)
The oil price at the time of this analysis is $68.04
- Buy if the price moves below $68.16
- Sell if the price moves below $67.99
Resistance 2: $68.33
Resistance 1: $68.24
Support 1: $67.90
Support 2: $67.80
Disclaimer
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
