BRENT OIL Climbs to One-Month High as Middle East Tensions Intensify
Brent crude advanced for a second straight session, supported by intensifying tensions between the United States and Iran, which have heightened concerns over global energy supplies and raised the prospect of prolonged disruptions in the oil market.
The benchmark crude climbed to its highest level in more than a month, with bullish momentum remaining firmly intact as geopolitical risks continue to dominate market sentiment. Investors are increasingly concerned that the latest developments around the Strait of Hormuz could trigger fresh supply shocks and place additional strain on already fragile Western economies.
From a technical standpoint, the outlook has strengthened considerably. Brent successfully broke above and closed over both its 200-day moving average at $78.53 and the key psychological $80 barrier, reinforcing positive market sentiment and confirming a significant improvement in the broader trend.
Attention is now shifting toward the next major resistance area at $88.87, representing the 38.2% Fibonacci retracement of the decline from $119.18 to $70.13, followed closely by the psychological $90 level.
The formation of a 5/200-day moving average golden cross, alongside a bullish crossover of the 10-day and 20-day moving averages, further supports the constructive near-term outlook. A sustained break above the $88.87–$90.00 zone would likely confirm a broader trend reversal and pave the way for further gains.
That said, some profit-taking cannot be ruled out after the recent strong rally, particularly as prices approach the $90 region, where sellers may attempt to re-enter the market. However, under the current geopolitical backdrop, any corrective pullbacks are expected to remain limited and likely attract renewed buying interest.
For the bullish outlook to remain intact, corrective moves should ideally stay above the $82.00 support zone, which is expected to provide a solid foundation for fresh upside attempts.
Res: 88.00; 88.87; 90.00; 91.30
Sup: 85.80; 84.10; 83.70; 82.80
