Oil prices have risen for two days in a row, trading near $100.60 per barrel during the Asian session on Tuesday. On the H1 chart, the 200 SMA sits at $100.70, acting as a resistance ceiling just above the current price. The 50 SMA on the same chart is at $97.50, working as support well below. On the H4 chart, the 200 SMA is at $98.15, serving as a deeper support zone. The 50 SMA on the H4 chart is at $100.00, sitting just below the current price and acting as nearby support. The current price of $100.60 is trading above the H4 50 SMA but just under the H1 200 SMA at $100.70. This tells us that bulls are strong but face a key test just above. On the downside, the key support areas are as follows. First support is at $99.50 to $100.00, where the H4 50 SMA sits as the first line of defense. Second support is at $98.00 to $98.50, marking the H4 200 SMA zone and a middle level. Third support is at $97.00 to $97.50, a strong demand area from past trading. More support levels include $96.00 to $96.50, $95.00 to $95.50, and $94.00 to $94.50 as deeper floors. On the upside, the key resistance areas are as follows. First resistance is at $100.70 to $101.00, where the H1 200 SMA sits as the immediate hurdle. Second resistance is at $102.00 to $102.50, a recent peak and supply zone. Third resistance is at $104.00 to $104.50, representing a major round number and ceiling. More resistance levels include $105.00 to $105.50, $106.00 to $106.50, and $108.00 to $108.50 as higher targets. Crude prices are soaring as tensions in the Middle East threaten global energy supplies. The $100.70 level is the key near-term resistance. A break above would open the door to higher levels, while a rejection could trigger a pullback toward $100.00.
Crude prices are soaring as tensions in the Middle East threaten the world's most critical energy shipping channel. President Trump is growing more frustrated with the stalled talks to end hostilities in the region, according to a CNN report released Monday. The government is now making a major shift toward restarting military operations, which marks a big escalation from previous weeks. In a blunt assessment from the Oval Office, Trump described the current US-Iran ceasefire as "extremely precarious" after formally rejecting Tehran's latest peace offer. This breakdown has raised fears that the Strait of Hormuz, the world's main oil route, will stay effectively closed for the foreseeable future. Iran's parliament speaker further shook regional stability. In an interview with Reuters, he warned that the Iranian military is on full alert and ready to hit back against any future attacks, putting intense pressure on the fragile ceasefire. Tehran's current demands for a lasting ceasefire reportedly include an immediate end to the US naval blockade and the lifting of international economic sanctions, while the country wants to keep control of ship traffic in the key shipping route. The real impact of this crisis was seen on Monday. OPEC oil production fell to its lowest level in more than twenty years in April. The near-total closure of the strait has forced major oil producers to cut their exports because they cannot reliably move crude to global markets. Saudi Aramco's CEO issued a stark warning that disruptions in oil exports through the strait could delay a return to market stability until 2027. He pointed out that the industry is currently losing about 100 million barrels of oil per week, making the energy sector very alert to possible ongoing volatility. The most likely path ahead is more upside for crude oil. The $100.70 level is the key resistance to watch. A clean break above would open the door to $102.00 and then $104.00. But any signs of de-escalation could trigger a pullback toward $100.00 and then $98.00. The key levels to watch are support at $100.00 and resistance at $100.70.
