Crude oil keeps edging higher as Houthi attacks on Saudi targets and disrupted Hormuz shipping persist. A report that the US military weighs using the MOAB against Iran adds to the tension, though it is only contingency planning.
Crude oil continues to edge higher because the Middle East shows no improvement. Investinglive says the Saudi Arabia-Houthis conflict has intensified recently, with Houthi attacks on many Saudi targets, including Riyadh's international airport and the Aramco headquarters complex in Dhahran.
The Houthis have threatened further attacks on airports and energy infrastructure. Meanwhile, Saudi-backed forces are fighting the Houthis inside Yemen.
Hormuz shipping stays disrupted
Commercial shipping through the Strait of Hormuz continues to be disrupted. Two vessels sank recently after Iranian forces hit them. Iran's leadership said it will keep fighting until the US accepts its demands.
Reuters also reported that, according to CNN, the US military has developed contingency plans that could include using the MOAB, the largest non-nuclear bomb, against Iranian energy infrastructure or nuclear-related sites if Trump orders renewed combat operations. However, Reuters could not independently verify the report, and the plans do not confirm the bomb will be used.
Key levels on the chart
On the daily chart, crude oil keeps rising steadily. Buyers could target a rally into the 110.00 resistance, while sellers would look for a break lower toward the 68.00 support, with 80.00 as the first target.
On the one-hour chart, the price is approaching 96.77, where sellers may step in.
What could shift the picture
Investinglive expects oil prices to likely stay supported until de-escalation or a breakthrough in US-Iran negotiations. A deteriorating growth outlook and a strong stock market selloff could also weigh on prices.
Today's calendar brings US PPI, US Retail Sales and Jobless Claims, plus Fed Chair Warsh in a fireside chat with IMF Managing Director Georgieva.
Source: Investinglive
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