By the end of yesterday’s session, Brent prices had consolidated above the significant $110 level, supported by simmering tensions in the Middle East. If crude manages to settle firmly in this territory, the stage will be set for further upside. According to the current technical picture, after reaching $113 per barrel in the short term, quotes could climb to $118–$120 next.
The Middle East crisis has heated up dramatically over the past few days. The Yemeni Houthis launched their first strikes against Israel, officially joining the conflict. This chain of events sent shockwaves through the markets, as the turmoil around Iran threatens to spill beyond the Persian Gulf and the Strait of Hormuz—casting a dark shadow over the Red Sea and the Bab el Mandeb, other key commodity routes.
In the meantime, US President Donald Trump has only added fuel to the fire by stating his plans to destroy Iranian energy infrastructure and seizing the country’s oil export hub. Global fuel prices have skyrocketed on the news. West Texas Intermediate (WTI), for instance, closed the day above $100 per barrel for the first time since the start of the Middle East conflict.
Taken together, technical and fundamental factors suggest that the short-term outlook for Brent crude is rather bullish. Quotes are highly expected to reach $113.
The ultimate recommendation is to buy Brent oil at the current price, targeting $113 per barrel within a week. To mitigate the risk of adverse market movements, place a Stop Loss order slightly below the present support level, or around $109.50.
