Oil Extends Gains as Red Sea Tanker Attacks Raise Supply Fears
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Oil Extends Gains as U.S.–Iran Tensions and Red Sea Tanker Attacks Raise Supply Fears

Published: 23 July 2026,06:19

Published: 23 July 2026,06:19

Daily Market Analysis New

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Key Takeaways:

*Crude oil prices continue to rise as U.S.–Iran tensions remain unresolved

*Vessel traffic through the Strait of Hormuz has fallen sharply amid ongoing strikes

*Markets continue pricing in a stronger geopolitical risk premium for oil

Market Summary:

Crude oil prices continued to extend gains as unsettled tensions between the United States and Iran kept supply disruption fears elevated. The ongoing conflict has increased concerns that energy flows across key Middle East shipping routes could remain disrupted for an extended period.

Adding to market concerns, Yemen’s Iran-backed Houthi rebels reportedly struck two Saudi tankers, further raising fears over the security of regional oil shipments. One tanker was hit by an unknown projectile around 70 miles southwest of Al Shuqaiq, Saudi Arabia, according to the United Kingdom Maritime Trade Operations.

The attack appears to be the first known strike on tankers transiting the Red Sea since the U.S.–Iran war began in late February. This has increased market anxiety because the Red Sea remains an important route for Saudi crude exports, especially as disruptions around the Strait of Hormuz continue to affect regional energy flows.

The United States and Iran have now engaged in tit-for-tat strikes for eleven consecutive days, leading to a significant drop in vessel traffic through the Strait of Hormuz. As one of the world’s most important oil transit routes, any prolonged disruption could tighten supply expectations and keep crude prices supported.

With both the Strait of Hormuz and Red Sea routes facing renewed security risks, traders are pricing in a higher geopolitical risk premium for crude oil. As long as tensions remain unresolved and shipping risks continue to rise, oil prices may stay supported in the near term.

Technical Analysis 

image

Crude Oil, H4: 

Crude oil prices are trading higher, currently testing the 88.60 resistance level, which remains a key breakout point.

A confirmed breakout above 88.60 could extend gains toward the next resistance level at 95.80, supporting further bullish continuation.

However, momentum is starting to show signs of exhaustion. The MACD is displaying diminishing bullish momentum, while the RSI at 69 is approaching overbought territory, suggesting a potential short-term technical correction.

If bullish momentum fails to sustain, crude oil may retrace and retest the 78.05 support level, followed by 68.90 if selling pressure intensifies.

Resistance Levels: 88.60, 95.80

Support Levels: 78.05, 68.90

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