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Brent consolidates near $97 after 4.7% surge tied to US-Iran tensions
Brent last traded around $96.99 after Tuesday’s biggest one-day gain since July 23, with traders watching Hormuz supply risks and the $100 barrier.
Brent oil is consolidating just below a new multi-week high of $96.99 after a sharp move higher Tuesday, when the contract rose 4.7%. Action Forex linked the rally to renewed US-Iran hostilities and growing concerns over global supply disruptions.
Market focus remains on the strategic Hormuz strait, which is described as being almost totally closed. The report also points to worries that the conflict could escalate further, adding to the upward pressure on prices.
Action Forex said the technical picture improved after a Tuesday break above the 100-day moving average at $91.21 and a close above the $94.80 zone. It noted Wednesday’s candle showed overbought conditions and a longer upper wick, which could translate into consolidation or limited dips.
The analysis says any pullback should hold above $92.85, identified as the broken Fibo 61.8% level now acting as support. It added that buyers may look to fill an Aug 27 gap and test the psychological $100 level again.
Latest closeBrent $95.32 ▲0.7%