Oil Prices Rise as US–Iran Tensions Threaten of Hormuz Supply
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Oil Prices Rise as US–Iran Tensions Threaten Strait of Hormuz Supply  

Published: 20 July 2026,10:41

Published: 20 July 2026,10:41

Daily Market Analysis New

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Key Takeaways:

*Crude oil extends last week’s gains amid escalating US–Iran tensions.

*Retaliatory attacks increase fears of a wider regional conflict.

*Iran withdraws from the interim peace agreement.

*Potential disruption in the Strait of Hormuz strengthens oil’s geopolitical risk premium.

*Oil prices may remain supported unless diplomatic progress reduces supply concerns.

Market Summary:

Crude oil prices extended last week’s gains as renewed tensions between the United States and Iran continued to raise concerns over potential disruptions to global energy supplies.

The two countries intensified their retaliatory attacks, with the US military reportedly conducting its ninth consecutive night of strikes. Another US service member was killed over the weekend, bringing the reported US military death toll to 17 since the conflict began.

Meanwhile, Tehran announced that it would no longer adhere to the terms of the interim peace agreement after launching further attacks against US allies in the Middle East. The decision has weakened expectations of a near-term diplomatic resolution and increased the risk of further escalation.

Market attention remains focused on the Strait of Hormuz, one of the world’s most important energy-shipping routes. Any restrictions, attacks on vessels or decline in shipping activity through the strait could disrupt oil exports and tighten global supplies.

With geopolitical tensions remaining elevated, crude oil retains an upside bias as traders continue to price in a higher supply-risk premium. However, signs of renewed negotiations or a de-escalation between the US and Iran could limit further gains.

Technical Analysis 

Crude Oil, H4: 

Crude oil prices are trading higher, currently testing the 86.90 resistance level, which acts as a key near-term breakout zone.

Momentum indicators remain supportive, with the MACD showing strengthening bullish momentum and the RSI at 60 holding above the midline, suggesting continued buying interest.

A sustained breakout above 86.90 could open the path toward the next resistance level at 95.80, reinforcing the bullish structure.

However, if prices fail to break higher, crude oil may experience a technical correction and retrace toward the 76.20 support level, followed by 66.70 if selling pressure intensifies.

Resistance Levels: 86.90, 95.80

Support Levels: 76.20, 66.70

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