Crude oil holds near recent highs as US-Iran standoff sustains supply risks despite diplomatic overtures.
Oil prices remain tilted to the upside as heightened US-Iran tensions keep geopolitical risks elevated, particularly ahead of the weekend. Traffic in the Strait of Hormuz has returned to pre-ceasefire levels following the reinstatement of naval blockades by both nations, sustaining supply concerns.
Recent diplomatic signals, including Iran’s openness to negotiations and the release of an American citizen, have tempered the rally but failed to spark a meaningful pullback. Analysts note that without clear de-escalation, downside risks remain limited, with resistance-turned-support near $78 holding firm.
Technical momentum suggests potential for further gains, with crude breaking above key resistance and targeting the $88 level. Buyers continue to defend the $78 zone, reinforcing the upward bias.