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

Today's Oil Market Performance

Global crude oil prices extended their rally on 23 July, marking a fifth consecutive day of gains as escalating tensions between the United States and Iran heightened concerns over global energy supplies. During Asian trading, WTI crude climbed to around $89.6 per barrel, while Brent crude surged to nearly $98, its highest level since early June. The latest spike followed reports of an explosion involving an oil tanker near the Strait of Hormuz, alongside renewed threats from Iran over shipping through one of the world's most critical energy chokepoints.

The rally has been reinforced by attacks on commercial vessels in both the Strait of Hormuz and the Bab el-Mandeb Strait, raising fears that two of the world's busiest oil shipping routes could face prolonged disruption. Analysts estimate that millions of barrels of crude oil pass through these corridors every day, meaning any sustained interruption could significantly tighten global supply and push prices even higher.

With WTI approaching the key $90 resistance level and Brent moving closer to $100 per barrel, investor interest in the energy sector has intensified. Traders are closely watching whether geopolitical risks continue to escalate, as further disruptions to Middle Eastern exports could trigger another leg higher in crude oil prices. For Australian investors, the heightened volatility is creating fresh opportunities to trade both WTI (USOIL) and Brent (UKOIL) CFDs, allowing them to potentially benefit from either rising or falling oil markets.

1. Escalating US-Iran Conflict Raises Supply Risks

The biggest catalyst behind today's rally is the continued escalation between the United States and Iran. Military strikes have intensified, while Iran has threatened to restrict energy shipments through the Strait of Hormuz—one of the world's most important oil transit routes.

Around 20% of global oil exports pass through the Strait of Hormuz. Any disruption to shipping immediately raises concerns about global crude supply, prompting traders to price in a geopolitical risk premium. Recent reports also indicate that tanker traffic through the strait has slowed significantly as security risks increase.

2. Brent Crude Breaks Above $90

Brent crude futures have now moved back above $90 per barrel, a level closely watched by technical traders and institutional investors. The breakout reflects growing expectations that supply disruptions could become more severe if tensions continue to escalate.

Meanwhile, WTI crude has gained more than 15% over the past week, making this one of its strongest weekly rallies since earlier this year.

3. Markets Are Pricing Higher Shipping and Insurance Costs

Even without a complete disruption to oil exports, rising military tensions have already pushed up tanker insurance premiums and shipping costs across the Gulf region.

Higher transportation costs increase the delivered price of crude oil, tightening global supply conditions and supporting higher benchmark prices for both WTI and Brent. Analysts note that prolonged disruptions could add several dollars per barrel to global oil prices.

4. Tight Global Inventories Amplify the Rally

The geopolitical backdrop is being reinforced by already tight global oil inventories. Analysts note that commercial crude stockpiles remain near multi-year lows, leaving the market more vulnerable to supply shocks than in previous years.

With inventories constrained, any unexpected disruption to Middle Eastern exports has a greater impact on prices because there is less buffer available to offset lost supply.

What Could Happen Next?

The next direction for oil prices will largely depend on developments in the Middle East.

If shipping through the Strait of Hormuz remains constrained or military tensions escalate further, Brent crude could challenge $95–100 per barrel, while WTI may continue advancing toward the upper-$88s. Conversely, any signs of diplomatic progress or improved tanker flows could trigger profit-taking after the recent sharp rally.

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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. ”  

While fundamentals remain supportive in the short term, traders should prepare for heightened volatility as every new geopolitical headline has the potential to trigger sharp price swings.

Bullish Scenario

The bullish trend remains intact as long as supply risks in the Middle East continue to escalate.

Key upside levels to watch are:

Some market analysts believe Brent could test $100 per barrel if shipping disruptions worsen or regional conflict expands beyond current levels.

Bearish Scenario

Under this scenario, traders may see:

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 outlook remains constructive, with momentum favouring buyers while prices hold above recent breakout levels.

However, oil is expected to remain headline-driven over the coming weeks. Traders should closely monitor:

• Developments in the U.S.-Iran conflict

• Shipping activity through the Strait of Hormuz

• OPEC+ production policy

• Weekly U.S. EIA crude inventory reports

• Global demand indicators from China and the United States

• The U.S. Dollar and Federal Reserve policy outlook

If geopolitical tensions continue to intensify, WTI could challenge the $90 mark, while Brent may move toward $95–100, making crude oil one of the most closely watched markets in the second half of 2026.

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

Open a Oil Trading Account