Crude oil futures settled at $94.14, up $0.40 or 0.43%, as elevated Middle East tensions kept supply risks in focus.
Headlines centered on reports that Israeli Prime Minister Benjamin Netanyahu spoke with President Trump last week about renewing military action against Iran. Netanyahu reportedly wanted to act before the elections, while Trump told him to prepare but made no firm commitment to support an attack. Israel’s defense minister warned that anyone attacking Israel would pay the price, regardless of election timing. Meanwhile, Iran’s IRGC navy commander reportedly threatened to sink American ships approaching the entrance to the Strait of Hormuz.
Tensions also remained high in Yemen. The Saudi-led coalition said it struck an oil facility in Sanaa used by the Houthis to support attacks, while Yemen’s deputy defense minister described the battle as open on all fronts. Trump warned the Houthis that he would remain in office after the elections and would not forget their actions. France said it was helping protect navigation in the Red Sea and Bab al-Mandab. Together, those headlines kept the risk of disruptions to energy supplies and key shipping routes firmly on traders’ radar.
Technically, buyers defended support early in the session. The low at $91.70 held just above the 38.2% retracement at $91.60, with the rising 100-hour moving average—currently at $91.54—and the rising 200-hour moving average at $90.94 providing additional support below. Sellers had their shot to challenge that support zone, but could not push through.
The subsequent rebound took the price above yesterday’s high at $94.36 to a session high of $94.70. However, the settlement at $94.14 put the price back below yesterday’s high, leaving buyers with more work to do. Moving back above $94.36 and then $94.70 would strengthen the bullish bias. On the downside, sellers would need to break the retracement and both hourly moving averages to take greater control. Until then, the support held and the buyers retain the technical advantage.
This article was written by Greg Michalowski at investinglive.com.
