Oil prices are trading near 11-month highs, at the $74.00 area, with downside attempts finding buyers.
Fears that the Middle East conflict will lead to a supply disruption keep Crude prices buoyed.
US has postponed its decision to attack Iran, which is keeping prices from escalating further.
Crude Oil prices keep trading near their highest levels since January, with the barrel of WTI trading at the $74.00 area at the moment of writing. Fears that the Middle East conflict might lead to a severe supply disruption are keeping downside attempts limited.
The bearish rereversal seen on earlier today, after the US postponed its decision to involve in the Israel - Iran war, has been contained at $72.45, and prices are piching up again during the European morning returning to levels close to the $75.00 resistance area, which has been capping bulls for the last week.
Looking from a wider perspective, Oil prices are on track to close the week with minor gains to complete a 20% rally in the last three weeks. Investors are concerned that the Middle East conflict might cause the closure of the Strait of Hormuz, the gateway to one-fifth of the world’s crude supply, which would push crude prices to levels well above $100.
In the meantime, Israel and Iran continue exchanging fire and threats as the war enters its eighth day with no signs of de-escalation in sight. Israel’s defence minister threatened once again to kill Iran’s Supreme Leader, Ali Khamenei, and Iran has vowed to inflict “irreparable damages” if the US gets involved in the war.
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