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Brent jumps to $86 as ceasefire fears lift Middle East risk
Brent is trading near the $85 area, and a break above that level could reopen a move toward $90 to $92, while rejection could pull prices back into the $70 to $80 range.
Brent crude rose to about $86 a barrel, its highest level in a month, as the Washington-Tehran ceasefire effectively collapsed and tensions in the Middle East reignited. Action Forex said US strikes hit Iranian defense infrastructure, Iranian missiles struck Emirati tankers, and Washington reinstated its naval blockade of Iranian ports.
The report linked the move to broader dollar and inflation dynamics as well. It noted that June CPI year over year eased, with headline inflation at 3.5%, below the expected 3.8%, which reduced bullish pressure on the US dollar and supported dollar-denominated commodities.
On the technical side, Brent shifted from a downtrend after it bottomed near $70 in early July, printing higher highs and higher lows. Action Forex said the price has confirmed a break and retest of a descending trendline and reclaimed the 200-period EMA, placing the market at a key juncture around the $85 zone.
From there, the outlet framed two possible paths: a confirmed break above $85 could aim the market toward the $90 to $92 area, while rejection could push Brent back into the $70 to $80 range. It added that confirmation of a bearish reversal would come from a break below both a short-term trendline and the 200-period EMA.
Latest closeWTI crude $79.90 ▲2.2%|Brent $85.36 ▲2.5%