Crude prices continued to climb, driven by escalating tensions in the Middle East

Oil prices extended their strong rally into a second consecutive day, rising 1.6% during the European session on Wednesday after a 3.45% surge on Tuesday—marking the biggest daily gain since August 12.

The price jump was driven by increasing concerns that further escalation in the Middle East conflict could disrupt crude supplies from the region, fueling a significant boost over the past two sessions.

The latest rally strengthened the technical outlook on the daily chart, as prices climbed above the 50% retracement level of the $77.57 to $65.26 decline and the psychological $70 mark, supported by strong positive momentum and bullish alignment of the 10 and 20-day moving averages.

Bulls are now testing pivotal resistance at $72.38 (the September 24 lower top). A break above this level would complete a bullish failure swing pattern on the daily chart and soften the bearish structure on the weekly chart, which has been weighed down by multiple Death Crosses and strong negative momentum.

The broken daily Kijun-sen at $71.08 is expected to provide strong support, maintaining the bullish bias, while a breach below the $70 level (reinforced by the 10-day moving average) could signal a potential reversal.

In the near term, fundamentals will likely play a critical role, with further conflict escalation in the Middle East possibly driving oil prices higher and accelerating the upside momentum.

Res: 72.38; 72.87; 73.37; 74.27
Sup: 71.41; 70.88; 70.00; 69.26