WTI crude oil surged to $77 and broke above the 200-day SMA amid the Iran-Israel conflict, while natural gas is building positive momentum above $3.
by Muhammad Umair
FX Empire
WTI crude oil (CL) extended its rally to around $70.60 during Tuesday’s Asian session. Prices surged to $77 last week due to heightened geopolitical risk following Israel’s attack on Iran. A correction was developed on Monday after reports of significant damage to Iran’s uranium enrichment facility. These developments have raised concerns about a broader regional conflict. The ongoing tensions may trigger strong volatility in the energy sector and could push oil prices even higher.
Oil prices also found support from remarks by a senior Iranian commander, who stated that Iran may close the Strait of Hormuz. This narrow passage handles nearly 20% of the world’s oil shipments. Any disruption could drive oil prices sharply higher. Market participants remain cautious, as the risk of supply disruption continues to support bullish sentiment in crude.