Testing a key swing area gives crude oil shorts a risk reference
Crude oil futures test a key swing area, giving traders a level to define risk and short-term bias.
Iran disrupts Hormuz traffic to pressure oil prices; US counters with economic pressure. No breakthrough imminent as crude nears $93.50.
Iran seeks to gain leverage by driving up oil prices through disruption of Hormuz shipping traffic. The US is attempting to impose severe economic costs and suffocate Iran's economy.
Regional civilians and global crude oil buyers are caught in the middle. No one is currently winning, and there appears to be little hope for a near-term resolution. A suggestion this week was that Trump would claim victory and leave it to others to guide ships through the Strait or negotiate with Iran. On the other side, Iran has had difficulty slowing shipping and has begun attacking land targets in Kuwait.
Signs indicate the market is losing patience and oil supply, with crude prices rising over $10 in the past week and approaching the July high of $93.50. That will be a key pivot point in the short term.
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Crude oil futures test a key swing area, giving traders a level to define risk and short-term bias.
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