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Brent slides from $100 as Saudi floats maritime coalition plan
Saudi Arabia’s 30 July proposal to protect shipping routes comes as tanker traffic through the Strait of Hormuz partially resumed, though reports of attacks remain unconfirmed.
Brent crude pushed above $100 on 23 July amid reports of attacks on tankers and infrastructure in the Red Sea, and heightened rhetoric around shipping security involving the United States and Iran, including comments tied to the Strait of Hormuz. The move proved short-lived, with prices later slipping as diplomatic and security developments continued to evolve, according to Action Forex.
On 30 July, Saudi Arabia proposed creating a maritime coalition intended to protect key shipping routes. Action Forex cited CNBC data showing tanker traffic through the Strait of Hormuz partially resumed as of 31 July, while the Islamic Revolutionary Guard Corps claimed attacks on vessels under US escort that were not confirmed by Western maritime authorities.
The technical setup referenced by Action Forex shows Brent forming a short-term trend in early July, rising from about $71 toward the $102 area before breaking down. The article says price is currently trading between a point of control zone at $92.20 and the upper boundary of the profile at $94.60, with potential upside described as a breakout beyond that boundary and potential downside if price falls below the point of control.
Action Forex also linked the outlook to the geopolitical risk premium priced into oil, arguing that a gradual reduction is possible if coalition and diplomatic efforts make progress. At the same time, unconfirmed reports from the Strait of Hormuz were described as a source of continued volatility, with RSI and moving averages positioned in the neutral range and volume remaining relatively high.
Latest closeWTI crude $86.80 ▲3.8%|Brent $90.12 ▲1.2%