Oil Price Rebounds On Rising Middle East Conflict

Fundamental Analysis

* Tension-Fueled: Oil prices surged by over $1 on Tuesday, recovering from the previous day’s decline as fears of a worsening Middle East conflict overshadowed concerns about a potential U.S. recession that might dampen demand. The rise in oil prices comes amid heightened tensions between Israel and Iran, with both sides preparing for further escalation. Iran, along with its allies Hamas and Hezbollah, has vowed to retaliate against Israel following the recent killings of a Hamas leader and a Hezbollah military commander. The U.S. is working to communicate to Iran that escalating the conflict is detrimental, according to a State Department spokesperson, with Secretary of State Antony Blinken describing the situation as a “critical moment” for the region.

Technical Analysis

* Technical Breakout: Crude oil price was traded higher following prior rebound from the support level 72.00. MACD which illustrate diminishing bearish momentum signal suggests that the commodity may continue to see further gains.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards 75.80. Conversely, a potential reversal is also to be expected and the price could head back towards 72.00.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

* Looking ahead, traders will closely watch the situation in the Middle East, as increasing tensions are likely to introduce significant volatility and impact on oil prices. Additionally, investors will keep a keen eye on U.S. data, including crude oil inventories and Initial Jobless Claims, which could also influence market movements.

Know how to manage trading risks with risk management strategies.

Monitoring

Stay updated on US data, Middle East developments, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

Grab the trading opportunity and dive into the action risk-free with a free demo account. It is the perfect way to hone your skills and explore the exciting world of trading!

Open Your Free Demo Account And Start Trading Risk-Free

Join Now

Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.