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Brent jumps toward $106 as Middle East supply fears escalate
Brent gained more than $3 to near $106, after breaking and holding above $100 amid fears for oil flows through the Strait of Hormuz and Bab el-Mandeb.
Brent crude surged more than $3 on Thursday, trading close to $106 after reclaiming the $100 psychological level for a sustained move. The rally followed Wednesday’s break and close above $100, which market participants treated as a bullish signal.
The price jump was driven by further escalation in the Middle East, including US attacks on Iranian tankers and Iran’s response targeting US military bases and ships. Investors pointed to heightened concerns about global supply as the Strait of Hormuz remains nearly fully closed, while threats that Yemen’s Houthis could disrupt Bab el-Mandeb added additional shockwaves.
According to Action Forex, Brent has risen over 30% from an early August low, and the sustained trade above $100 is seen as increasing the risk of an uncontrolled move that could raise inflationary pressure. The outlet also cited technical levels on daily charts, including $101.97 and $100, with the $101.97 break reverting to support and $100 described as the key downside line.
Action Forex noted that while conditions may be overbought and could trigger limited profit taking, traders appear positioned for a fresh push higher. The analysis highlighted a next target around $107.71 and framed the move as part of a broader five wave cycle from the Aug 5 low of $78.10.
Latest closeWTI crude $97.01 ▲4.3%|Brent $102.05 ▲4.2%