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Brent slips after rally fails to hold $90 as Hormuz talks sour
Brent reversed after breaking above the $90 level, with the price later dropping more than $3 and cracking support near $87.2.
Brent crude rose to its highest level in more than a week on Tuesday, extending Monday’s nearly 5% advance, but the recovery stalled after a verbal escalation by President Trump shifted market sentiment around reopening the strategic Hormuz Strait, Action Forex reports.
The latest demands prompted Iran to stop negotiations with the current US administration until the end of Trump’s mandate in 2029, undercutting efforts by Iran and Oman to reach a solution for reopening the strait, according to Action Forex.
Technical signals turned mixed as Brent cracked the psychological $90 barrier, but then quickly reversed, warning the rebound may be losing momentum, Action Forex said. The selloff during the mid-European and early US session pushed Brent down more than $3 and broke support at $87.22, which the outlet flagged as a key level tied to a prior Fibonacci read and the 20-day moving average.
Action Forex added that a limited pullback that holds above $87.22 or a move to firm footing above the $85.00 zone could keep hopes alive for another push at the $90 area, while deeper weakness would leave the downside vulnerable to a full reversal of the recovery leg. It also cited upside targets near $92.85 and $93.28 if the $90 pivot retakes hold.
Latest closeWTI crude $82.30 ▲5.3%|Brent $87.85 ▲5.2%