WTI crude rallied close to 3% above $82 as U.S.–Iran strikes widened in the Middle East. Brent climbed above $87, and traders braced for further attacks over the weekend.
WTI oil climbed above $82.00 as traders focused on widening U.S.–Iran strikes in the Middle East, a move that added close to 3%. The advance extended a broad rally across the oil markets.
Strikes widen to non-military targets
The U.S. and Iran traded strikes whose targets included non-military assets such as Iran's bridges and Kuwait's water desalination plants. Traders fear the widening range of strikes could mark a return to all-out war.
Earlier, President Trump threatened to intensify strikes against Iran if it maintained its stance on the Strait of Hormuz and kept attacking vessels using alternative routes. Traders now worry the U.S. could target Iran's critical infrastructure, prompting Iran to retaliate against oil and gas assets in the region.
Recent reports suggest traffic through the Strait of Hormuz has declined significantly, though some oil may still move through the route.
Where the crude benchmarks stand
WTI cleared resistance at $80.00–$80.50 and is trying to settle above $82.00; a successful push would open the way to the 50 MA at $84.42. A move above that level would point toward resistance at $86.00–$86.50, while a slip back below $80.00 would expose support at $74.50–$75.00.
Brent oil climbed above $87.00 and is testing the $88.00 area as traders react to the same escalation. It has settled above resistance at $86.00–$86.50 and is trying to clear its 50 MA at $88.40, above which lies the next resistance at $90.50–$91.00.
Source: FXEmpire
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