Crude Oil Traders Are Not Buying the De-escalation Yet
Crude oil prices are keeping a geopolitical premium even as a U.S.-Iran deal looks closer, with WTI and Brent still pricing Strait of Hormuz risk.
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Crude oil prices are keeping a geopolitical premium even as a U.S.-Iran deal looks closer, with WTI and Brent still pricing Strait of Hormuz risk.
Razan Hilal, FOREX.com Market Analyst, breaks down the WTI and Brent crude charts and the technical levels that separate an escalation scenario from a de-escalation scenario.
The Strait of Hormuz stays central to how crude oil trades, holding a risk premium in place despite hopes for de-escalation between the United States and Iran.
On the charts, WTI crude oil and Brent crude are testing long standing barriers that have flipped between support and resistance since 2019, with Fibonacci retracement levels mapping the zones that would confirm either a renewed escalation or a lasting de-escalation.
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