Escalating US-Iran conflict drives oil prices higher as traders price in supply disruption risks in the Middle East.
West Texas Intermediate crude oil climbed to a nearly one-month peak of $80.00 per barrel during Tuesday’s Asian session, extending gains for a second straight day. The rally follows renewed supply concerns after the US conducted a third night of strikes against Iran, and Iran’s Revolutionary Guard targeted US facilities and UAE tankers in the Strait of Hormuz.
Prices broke above the 23.6% Fibonacci retracement level of the April-July decline and the 200-day exponential moving average, signaling bullish momentum. The MACD indicator turned positive, while the RSI at 55.10 suggests further upside potential without overbought conditions.
Traders are pricing in a geopolitical risk premium, supporting the recent recovery from February’s lows. The Strait of Hormuz remains a critical chokepoint for global oil shipments, amplifying supply fears.