US-Iran tensions escalate: Brent crude oil price tests $90

The price of a barrel of Brent crude oil has continued its upward trend in international futures markets, testing the $90 level. Having closed the previous day at $87.72, the October-delivery price of Brent crude rose by 2.6 percent as of today, reaching $90. Simultaneously, the price of a barrel of West Texas Intermediate (WTI) crude for August delivery was trading at $84.36.

US-IRAN TENSIONS AND THE HORMUZ STRAIT UNCERTAINTY

The primary factor behind the upward momentum in oil prices has been the weakening of hopes for a swift agreement between the United States and Iran. US President Donald Trump's decision to keep options for large-scale military intervention against Iran on the table, and his assertion that Tehran is the party that should pay the main compensation for the damage it has caused in the region, have heightened tensions in the markets.

Pointing to the economic difficulties Iran is facing, Trump stated that the Strait of Hormuz is under the control of the US Navy, emphasizing that only authorized tankers are allowed to pass and that a blockade is being applied to other vessels.

GLOBAL SUPPLY CONCERNS AND TECHNICAL EXPECTATIONS

Analysts point out that ongoing security risks in the Strait of Hormuz and the Bab el-Mandeb Strait are exerting short-term pressure on energy supply and global tanker transport. In addition, the delay in the commissioning process of the Jazan refinery in Saudi Arabia stands out as another significant factor increasing concerns regarding oil supply.

Experts predict that if no consensus is reached in diplomatic talks between the US and Iran, high volatility in the markets may continue for some time, with prices fluctuating in the $75 to $95 band. From a technical perspective, the $90.22 level is being monitored as a strong resistance point for Brent crude, while $88.64 serves as a critical support level.

News Source: 12punto