Oil Weakens, Iran Choke Point Still Hanging
Oil prices weakened as the market rekindled hope that the US and Iran could reach a peace deal, despite ongoing hostilities. Brent fell to near US$98 per barrel after surging nearly 4% on Tuesday, while WTI hovered around US$92. US Secretary of State Marco Rubio emphasized that a deal would likely take several days to finalize, amid reports of a US attack near the strait and claims the IRGC shot down several US aircraft.
The Strait of Hormuz itself remains practically closed due to the blockade, so a full reopening is not yet considered a "next story." Although there are signs of activity—at least two non-Iranian supertankers have left the chokepoint and around 4 million barrels of non-sanctioned crude oil have been seen passing through—the market believes the physical recovery will take longer. Therefore, the decline in oil prices is expected to be shallow and temporary until there is certainty that Hormuz is fully opened and shipping flows return to normal. (asd)
Oil Price at the Time of Release of This Analysis is at $97.62
- Buy if the price moves to $98.57
- Sell if the price moves to $97.67
Resistance 2: $97.32
Resistance 1: $97.99
Support 1: $97.41
Support 2: $97.16
Note: This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on your trading before making any investment decisions.
Source: Newsmaker.id
