Crude prices are ending the week at highs after the futures market broke out to its strongest level in 6 weeks today amidst an escalation in the US/Iran war. Iran reportedly hit 4 oil tankers in the Strait of Hormuz this week while Trump is said to be considering his options for launching fresh strikes against Iran after the US midterms on Tuesday.

Trump Weighing Options

There has been plenty of speculation recently about what action the US President will take and CENTCOM chief Adm. Brad Copper has now presented options to Trump after he asked for plans to be drawn up. With the prospect of a renewed focus on the war, oil prices look vulnerable to sharply higher prices next week if Trump does launch attacks against Iran.

Middle East Conflict

Meanwhile, Iran allied Houthi militants are continuing their campaign against Saudi Arabia, targeting energy infrastructure as well as airports and shipping ports. The ongoing threat to oil supply from this aspect of the conflict in the Middle East is also feeding into bullish oil sentiment here. Alongside this conflict, the war between Ukraine and Russia rages on too, adding to a backdrop of uncertainty around global supply levels and the constant risk of disruption which has kept oil prices elevated all year.

Technical Views

Crude

Oil prices are once again pushing up against the 104.26 level and with momentum studies bullish, risks of a breakout towards 108.73 and beyond are growing here. Medium-term, the bullish outlook remains in place while price holds above the 95.06 level, supported too by the bull channel from summer lows.

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Tagged in: #crude #xtiusd #trump #iran

Written byleos James Harte

With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.