Brent: Hormuz disruption sustains price pressure – Rabobank

💡 DMK Insight

Brent futures hovering in the mid-$90s signal a precarious balance in oil markets, especially with geopolitical tensions simmering in Iran. Traders should note that while the recent drop from $108 might suggest easing fears, it could also indicate a market underestimating the potential for escalation. If the conflict intensifies, we could see a rapid rebound in prices, potentially breaking through resistance levels. Keep an eye on the $95 mark; a sustained break below could trigger further selling, while a bounce could reignite bullish sentiment. Additionally, watch how this impacts correlated assets like energy stocks and ETFs, which often react sharply to oil price movements. The real story here is whether traders are too complacent about geopolitical risks, which could lead to volatility in the coming weeks.