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Market Insights > Daily Market Analysis New

Oil Hits Five-Week High as Middle East Supply Disruption Fears Intensify

Published: 22 July 2026,05:34

Daily Market Analysis New

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Key Takeaways:

*Crude oil prices extend gains to a five-week high as Middle East tensions escalate

*Houthi threats force Saudi crude tankers to reverse course in the Red Sea

*Renewed U.S.–Iran military actions raise concerns over wider regional disruption

*Strait of Hormuz and Red Sea risks continue supporting oil’s geopolitical premium

Market Summary:

Crude oil prices continued to extend gains to a five-week high as concerns grew that energy supply disruptions in the Middle East could worsen. Renewed military actions between the United States and Iran, combined with rising threats to regional shipping routes, have kept traders focused on the risk of prolonged supply disruption.

Two oil tankers carrying Saudi crude to Asia reportedly reversed course in the Red Sea on Tuesday after threats from Iran-aligned Houthi forces. The tankers, which had loaded Saudi crude bound for China and India, made U-turns and were heading toward the Suez route, according to shipping data.

The latest development came after the Houthis announced a naval blockade on Saudi Arabia, expanding the conflict and increasing risks to global energy supplies and trade beyond the Gulf. This has added another layer of uncertainty to oil markets, especially as the Red Sea remains a key route for energy and commercial shipping.

At the same time, tensions between the United States and Iran continued to escalate. U.S. forces reportedly launched strikes on targets in southern and western Iran, while Tehran targeted U.S. sites in Bahrain, Kuwait, and Jordan. Reports that at least one tanker was hit near the Strait of Hormuz further intensified concerns over the security of energy flows.

With both the Red Sea and Strait of Hormuz facing renewed disruption risks, crude oil remains supported by a strong geopolitical risk premium. These routes are critical for global energy trade, and any prolonged instability could tighten supply conditions, especially for Asian buyers.

Overall, oil prices remain highly sensitive to further developments in the Middle East. As long as tensions persist and shipping risks remain elevated, supply disruption fears are likely to continue supporting crude oil prices in the near term.

Technical Analysis

oil chart – PU Prime | More Than Trading

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 remains bullish, with the MACD showing increasing upside momentum and the RSI at 70 entering overbought territory. This suggests that the rally remains strong, although short-term exhaustion risk is also increasing.

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

However, if bullish momentum fails to persist, crude oil may experience a technical pullback and retest 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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