Conflict Escalates, Oil Prices Surge Over 3%
Oil prices rose following a renewed escalation of tensions in the Middle East. Brent crude strengthened by US$3.04, or 3.6%, to US$87.13 per barrel, while WTI rose by US$2.80, or 3.5%, to US$82.06.
The rise occurred after the United States and Saudi Arabia launched strikes against an Iran-backed group in Iraq. The group had been accused of carrying out drone attacks on Saudi oil facilities.
Tensions mounted further after the US military announced it had successfully thwarted an Iranian missile attack targeting American forces in the region. These developments have reignited fears of a widening conflict.
Markets are also keeping a close watch on the Strait of Hormuz after Iran rejected a proposal from Oman regarding the joint management of the waterway. Tehran seeks to retain control over shipping activities in one of the world's most critical energy corridors.
Traffic of commodity vessels through the Strait of Hormuz remains severely limited. Meanwhile, vessel movement through the Bab el-Mandeb Strait rose to 39 ships on Tuesday—the highest level since July 19—before dropping back to five ships on Wednesday.
Oil price at the time of this analysis: $84.68
- Buy if the price moves to $84.60
- Sell if the price moves to $84.75
Resistance 2: $85.00
Resistance 1: $84.85
Support 1: $84.55
Support 2: $84.35
Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
