Oil trades near $68-$69 range after US-Iran tensions ease and supply risks decline, with Fed policy adding downward pressure.
Crude oil prices have retreated to near pre-war levels around $68-$69 as the Strait of Hormuz reopens and geopolitical risks fade. The decline follows the end of US-Iran hostilities, erasing war-related premiums and increasing supply expectations for coming months.
Prior to the conflict, oil traded in the mid-$60s before spiking above $75 on war fears. Analysts now see limited upside unless tensions resurface or US inflation data surprises, potentially shifting Fed policy. Technical levels suggest support at $68, with resistance near $78.
Markets remain focused on Fed tightening risks, which could further weigh on demand. Traders are positioning for either a break below support or a rebound toward resistance.