Brent Crude Falls Below $100 as Renewed Optimism Weighs on Prices

Brent crude remained under pressure for a fifth straight session on Tuesday, extending its decline from the $110 resistance area, where repeated upside failures signaled waning bullish momentum. The latest selloff pushed prices below the psychologically important $100 mark as investors grew increasingly optimistic that diplomatic efforts could prevent a further escalation of geopolitical tensions.

Hopes that ongoing negotiations may help contain the crisis triggered a fresh wave of risk appetite, driving oil prices down by more than $10 over the past few days. The sharp retreat has eased concerns across global markets, which had previously been rattled by supply disruption fears and persistent shortages.

Technically, the pullback from the $110 region, where a lower high structure appears to be forming, has breached key Fibonacci support at $97.67, representing the 38.2% retracement of the $78.10 to $109.77 rally. The move reinforces growing bearish signals on the daily chart, following earlier breaks below the 10-day moving average at $104.24 and the loss of the $100 threshold.

Momentum indicators have continued to soften, undermining what has largely remained a bullish broader technical picture. A sustained break below the $100 level would confirm a stronger bearish signal and could open the door for deeper losses in the near term.

Nevertheless, geopolitical developments remain the primary driver of price action. Market participants are closely monitoring potential discussions between the US and Iranian presidents during the UN General Assembly, alongside mounting pressure from Gulf nations to pursue a diplomatic resolution and avoid a deeper regional crisis.

While analysts remain cautiously optimistic about the prospects for dialogue, expectations are tempered by the significant differences that continue to separate both sides, which could complicate efforts to reach a meaningful breakthrough.

Res: 102.30; 104.24; 104.88; 106.00
Sup: 97.67; 95.02; 93.94; 91.45