Oil Price Rally Continues: Where to Trade WTI & Brent Crude Oil Before the Next Breakout

Today's Oil Market Performance

Global crude oil prices surged sharply on 1 September, reversing recent weakness as renewed direct military clashes between the United States and Iran revived fears of major supply disruptions in the Middle East. Brent crude (UKOIL) jumped 2.72% to settle at $90.68 per barrel, after reaching an intraday high of $91.52, while WTI crude (USOIL) climbed 3.42% to $86.30. Reuters reported that Brent and WTI had also posted gains of around 2.7% and 2.8%, respectively, in the previous session as the latest U.S.-Iran hostilities pushed crude prices to multi-week highs.

The latest rally has been driven primarily by renewed concerns over the Strait of Hormuz, one of the world's most important energy shipping routes. The resumption of direct U.S.-Iran military action has increased the risk of further attacks on energy infrastructure and commercial vessels, while efforts to reopen the waterway have so far failed to make meaningful progress. Shipping activity through the Strait has fallen sharply, adding another layer of risk to global crude supply.

The market is also facing a more complicated macroeconomic backdrop. Brent has moved back above the psychologically important $90 level, while WTI is approaching $90, and higher oil prices are once again raising concerns about inflation and interest rates. Reuters noted that the latest oil rally has contributed to a broader rise in global bond yields as investors reassess the inflationary impact of higher energy costs.

With WTI trading around $86 and Brent above $90, traders are now watching whether the renewed geopolitical risk can push crude towards the next major resistance zones around $90 for WTI and $95–100 for Brent. A further deterioration in U.S.-Iran relations, prolonged restrictions on Hormuz shipping or attacks on regional energy infrastructure could provide another catalyst for an upside breakout. Conversely, any credible ceasefire or progress towards reopening the Strait could trigger a sharp pullback in prices.

For Australian investors, the renewed volatility is creating fresh opportunities to trade both WTI (USOIL) and Brent (UKOIL) CFDs. CFDs allow traders to take long or short positions on oil prices without taking physical ownership of crude, making them particularly relevant when markets are moving rapidly in response to geopolitical headlines.

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Australian investors can trade crude oil through several financial instruments, including oil CFDs, futures, ETFs, and energy company shares. For most retail traders, oil CFDs are the most accessible option because they allow you to speculate on both rising and falling prices without owning physical barrels of oil.

The two most widely traded benchmarks are:

• WTI (West Texas Intermediate) – the U.S. benchmark, traded under the symbol USOIL

• Brent Crude – the international benchmark, traded under the symbol UKOIL

Oil CFDs are particularly popular because they offer:

• Trade both long and short

• Access to WTI and Brent from one account

• Lower capital requirements than oil futures

• Extended trading hours

• Built-in leverage (subject to ASIC regulations)

• Fast execution during major market events

💡 When choosing where to trade oil, look for a broker that offers competitive spreads, strong regulation, reliable execution, and an intuitive trading platform. For Australian traders, ASIC regulation is an important factor when evaluating broker safety.

These brokers provide access to the world's most actively traded oil benchmarks and are suitable for different trading styles—from beginners looking for a simple CFD platform to experienced traders seeking futures and advanced charting tools.

Whether you're looking to trade short-term price swings driven by geopolitical events or capitalize on longer-term oil trends, Mitrade provides a straightforward way to access the global energy markets without the complexity of futures contracts.

📌 Tip: Oil prices are highly sensitive to OPEC+ production decisions, U.S. inventory reports, geopolitical tensions, and global economic data. Before opening a position, always monitor the latest news and use appropriate risk management tools such as stop-loss orders.

Open a Oil Trading Account

      “Trade Crude Oil with an ASIC-regulated broker. Fast AUD funding via PayID. ”  

The key question for traders now is whether the latest geopolitical risk premium can push oil through its next major resistance levels. While the renewed conflict supports prices in the short term, any progress towards reopening the Strait of Hormuz could quickly reduce the risk premium and trigger a correction.

Bullish Scenario

The bullish outlook remains intact while tensions between the US and Iran continue to threaten oil shipments through the Gulf.

Key upside levels to watch are:

The bullish case would strengthen if:

• US-Iran military tensions escalate further;

• tanker traffic through the Strait of Hormuz falls further;

• energy infrastructure in the Gulf is damaged;

• negotiations to reopen Hormuz continue to stall;

• global inventories remain tight.

Reuters reports that visible vessel traffic through the Strait has fallen sharply, while mediation efforts to reopen the waterway have so far failed to gain traction. Since the Strait previously handled roughly one-fifth of global oil flows, prolonged disruption could significantly increase the geopolitical premium embedded in crude prices.

Importantly, the market may not need a complete shutdown of Hormuz to push prices higher. Even a sustained reduction in tanker traffic or higher shipping risk could keep Brent and WTI elevated.

Bearish Scenario

Despite the renewed rally, traders should not assume that oil prices will move higher in a straight line. The market remains extremely sensitive to any improvement in shipping conditions or diplomatic developments.

Any signs that supply concerns are easing could trigger a short-term correction after the recent surge, although underlying geopolitical uncertainty is likely to keep volatility elevated.

Outlook

The short-term oil price outlook remains bullish, but volatility is likely to remain exceptionally high.

The immediate levels traders should watch are:

• WTI: $90 resistance → $92–95 bullish target

• Brent: $92–95 resistance → $98–100 bullish target

• WTI support: $84–85

• Brent support: $89–90

If US-Iran tensions intensify and oil shipments through Hormuz remain restricted, WTI could challenge $90 and Brent could move towards $95 and potentially $100.

However, the risk of a sharp reversal should not be ignored. Any credible agreement to restore shipping through Hormuz could cause the geopolitical premium to unwind rapidly. Reuters also notes that analysts expect oil prices to remain above $80 during 2026 while shipping disruptions persist.

For Australian traders considering WTI and Brent CFDs, the next major price move is therefore likely to depend on a combination of US-Iran developments, actual Hormuz shipping flows, OPEC+ supply decisions and US inventory data, rather than technical momentum alone.

If you want to benefit from oil price movements without buying physical crude or trading complex futures contracts, oil CFDs offer a flexible alternative.

With Mitrade, Australian traders can speculate on both WTI (USOIL) and Brent (UKOIL) markets from a single trading account.

Step 1: Open a Trading Account: Create your Mitrade account online and complete the verification process.

Step 2: Fund Your Account: Deposit funds using your preferred payment method.

Step 3: Search for Oil Markets: Choose either:

• WTI Crude (USOIL)

• Brent Crude (UKOIL)

Step 4: Analyse the Market: Use Mitrade's built-in charts and technical indicators to identify trading opportunities based on support, resistance, trendlines and momentum.

Step 5: Place Your Trade: Decide whether oil prices are likely to:

• Rise → Open a Buy (Long) position.

• Fall → Open a Sell (Short) position.

Set your preferred position size together with stop-loss and take-profit levels before executing the trade.

Why Trade Oil CFDs with Mitrade?

• Commission-free CFD trading

• Access to both WTI and Brent crude

• Competitive spreads

• Long and short trading opportunities

• User-friendly mobile and desktop platforms

• Free demo account for beginners

• Real-time market analysis and price alerts

Because CFDs are leveraged products, they can amplify both profits and losses. Always use appropriate risk management and only trade with capital you can afford to risk.

Start Trading Oil in 3 Simple Steps

1

Open an Account

2

Fund Your Account

3

Trade Oil CFDs

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