Brent Strengthens in Asian Session, Middle East Risk Premium Rises Again
Brent oil prices strengthened in Asian trading on Wednesday, February 4, 2026, extending the previous day's gains. Brent rose around 1% to $68 per barrel, as the market re-established a risk premium after tensions in the Middle East escalated.
The increase was triggered by concerns of escalation after the United States shot down an Iranian drone approaching the aircraft carrier USS Abraham Lincoln. This incident is considered to increase the risk of further military incidents in strategic energy routes.
At the same time, reports indicated that armed Iranian speedboats approached a US-flagged tanker in the Strait of Hormuz—a vital transit route for oil exports from several Gulf countries. This factor has caused the market to react quickly, as potential logistical disruptions could directly impact global supply.
Hopes for de-escalation have also been shaken again, as Iran has requested that nuclear talks be moved to Oman and the scope be narrowed to bilateral issues. This uncertainty over the diplomatic path has led market participants to re-establish a risk premium rather than speculate on a quick resolution of the conflict. On the supply side, prices received additional support after market sources quoted the American Petroleum Institute as reporting a sharp drop in US crude oil inventories by more than 11 million barrels. However, the next direction could potentially be determined by official data from the US Energy Information Administration, which is released Wednesday at 10:30 a.m. ET (Western Indonesian Time) — the discrepancy between the API figures and official data often triggers intraday volatility.
In the broader market, Reuters noted that global sentiment remains fragile (stocks are volatile), but oil is actually rising as the headline-driven Middle East is once again the main narrative. Such conditions typically make price movements sensitive to breaking news, not just macro data.
The levels most traders are monitoring today are in the classic pivot area: Pivot 67.87, with support at 67.51, then 67.29, and resistance at 68.09, then 68.45. As long as the price remains above the pivot, the opportunity to test resistance remains open. However, if the EIA release disappoints or the headlines subside, a technical correction usually targets the nearest support area.
Source: Newsmaker.id
