Crude Oil Prices Rebound Following 7% Decline Amid US Strikes on Iran, Brent Surpasses $98 per Barrel.
Oil Prices Rebound Amid US-Iran War Tensions
Oil prices surged on Tuesday as fresh US military strikes in Iran cast doubt over the prospects of an interim agreement between Tehran and Washington to reopen the Strait of Hormuz. The global crude benchmark Brent crude climbed above $98 per barrel, while West Texas Intermediate hovered near $92 per barrel.
MCX Crude Oil Prices Rise 1.90%
Back home, crude oil prices also witnessed a similar upward movement on Tuesday. MCX crude oil prices rose as much as 1.90% to ₹8,779 per barrel. The rally in crude oil prices can be attributed to the recent US military strikes in Iran, which targeted missile-launch locations and boats allegedly attempting to deploy mines.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Negotiations Continue
Negotiations between the US and Iran are expected to continue for "a few more days" as both parties work on the wording of an initial agreement. The discussions aim to extend the ceasefire by roughly two months, under which Washington would ease its blockade, and Tehran would reopen the Strait of Hormuz. However, disagreements persist, with Tehran insisting on retaining control over maritime traffic through the strategic passage, a position opposed by the US, Arab nations, and Europe.
Crude Oil Price Outlook
Technical analysts point to a bearish bias in the crude oil market. According to Ponmudi R, CEO of Enrich Money, MCX Crude Oil is trading within the ₹8,700–₹8,750 zone, near the lower end of the ascending trend-line structure that continues to provide structural support. However, MACD and broader technical indicators reflect a persisting bearish bias.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
| Resistance Levels | Support Levels |
|---|---|
| ₹8,800-₹8,870 | ₹8,650-₹8,570 |
| ₹8,950-₹9,000 | ₹8,500-₹8,450 |
Key Statistics
- Brent Crude: $98 per barrel
- West Texas Intermediate: $92 per barrel
- MCX Crude Oil: ₹8,779 per barrel (1.90% rise)
Investor Takeaway
Crude oil prices may fluctuate in the short term due to geopolitical tensions.
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