WTI rises to near $105.00 as Trump threatens to hit Iran infrastructure

💡 DMK Insight

WTI crude oil hitting $105 is a game changer for traders: here’s why. The surge to this four-year high is largely driven by geopolitical tensions in the Middle East, which historically lead to supply concerns. Traders should be aware that such spikes often trigger volatility, and the current price could act as a psychological resistance level. If WTI can hold above $105, we might see a push toward $110, but a pullback could also happen if tensions ease or if there’s a significant increase in U.S. production. Keep an eye on the daily chart for any reversal patterns, as a failure to maintain these levels could lead to a swift correction. On the flip side, while the mainstream narrative focuses on immediate geopolitical risks, it’s worth considering the potential for a demand slowdown if economic indicators from major consumers like China show weakness. This could create a divergence in oil prices versus broader market trends. Watch for inventory reports and OPEC’s next moves, as they could provide critical insights into future price action.