Brent Pulls Back Amid Hopes for Easing Hormuz Tensions
Brent crude is currently undergoing a correction after gaining ground during the Asian session, driven by profit-taking and a market reassessment of the likelihood that tensions in the Middle East might ease. Brent had previously risen to around US$83.29 per barrel, fueled by concerns over Iran's plans to restrict US and Israeli vessels passing through the Strait of Hormuz. However, optimism that talks regarding the Hormuz shipping lanes and a resolution to the US-Iran conflict could still proceed has led to a partial reduction in the geopolitical risk premium.
Despite the pullback, downward pressure on Brent may remain limited as conditions in the Strait of Hormuz have not yet fully normalized. Iran has reportedly proposed a ban on vessels deemed "hostile"—along with fines of up to 20% of cargo value for violators—while regional tensions have reignited following reports of new attacks in the area by Houthi groups.
Oil price at the time of this analysis: $82.47
- Buy if the price moves to $82.70
- Sell if the price moves to $82.27
Resistance 2: $83.36
Resistance 1: $82.93
Support 1: $82.07
Support 2: $81.64
Note: This article is analytical in nature and does not constitute definitive advice. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
