Brent Falls as US-Iran Ceasefire Cuts Risk Premium
Brent oil prices fell sharply and returned below $100 per barrel after US President Donald Trump announced a two-week ceasefire agreement with Iran, which requires the safe opening of the Strait of Hormuz. The market believes the possibility of normalizing shipping flows will reduce the risk of supply disruptions, thus easing the geopolitical premium that had boosted prices in recent weeks.
However, selling pressure is not considered to automatically eliminate volatility because the agreement is temporary and its implementation still depends on the security of shipping lanes and the direction of further negotiations. In the physical market, falling prices have begun to attract buying interest, including from independent Chinese refiners who are returning to Iranian cargoes after Brent fell, but trading activity is reportedly still selective. (gn)
Oil prices at the time of this analysis's release were at: $94.05
- Buy if the price moves below $94.30
- Sell if the price moves below $93.91
Resistance 2: $94.94
Resistance 1: $94.55
Support 1: $93.77
Support 2: $93.38
Caution:
This article is analytical in nature and is not a definitive reference. Please consider the influence of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
