Crude oil prices are expected to remain highly volatile this week, sensitive to incremental updates regarding the Middle East situation.
Oil prices maintained a bullish tone throughout last week and faced additional buying pressure early this week amid escalating geopolitical tensions in the Middle East. On Tuesday, Brent crude approached $111 per barrel, while West Texas Intermediate (WTI) traded steadily above $115. However, both benchmarks appear to lack momentum as investors grew cautious about placing aggressive bids ahead of President Donald Trump’s deadline.
The bullish momentum surged early Tuesday as President Trump’s deadline for threatened attacks on Tehran’s infrastructure approached, following Iran’s rejection of a proposed 45-day ceasefire. Iran insists on a permanent end to the conflict with guarantees against future strikes and counters with its own 10-point demands. Trump called Iran’s response “not good enough” and reiterated threats to strike infrastructure if the Strait of Hormuz is not reopened by his deadline.
Meanwhile, commodity markets face uncertainty over the pace of future Federal Reserve rate cuts, as rising oil prices fuel near-term inflation concerns among global investors. Attention now turns to the release of crucial US inflation data this week, with traders hoping these figures will provide clues about the Federal Reserve’s monetary policy path.
Crude oil prices are expected to remain highly volatile this week, sensitive to incremental updates regarding the Middle East situation. WTI crude is trading near its March highs, with technical indicators suggesting the uptrend remains intact and may continue higher if prices break above recent peaks. However, failure to break out after multiple attempts could signal weakening upside momentum. Looking ahead, updates on Trump’s Iran policy, geopolitical developments, US CPI data, and Fed policymakers’ comments will be key factors influencing short-term oil price movements.
Warning! This material is not intended as investment advice. Past performance data does not guarantee future returns. Investing in foreign currencies may affect your returns due to their fluctuations. Any transaction with securities may result in both profits and losses. The assumptions and expectations set forth in this material are only estimates that may not be accurate and may change depending on current economic conditions. These statements do not guarantee future returns.
Technical analysis accounts for only a smaller part of success in financial markets, while the larger part is determined by human psychology. When you sit in front of a monitor and decide whether to open a position, a silent yet fundamental battle takes place in your mind. The difference between cold calculation and an emotional impulse is often thin, while the ability to recognize your own mental state at this single moment separates consistent investors from those who gradually wipe out their account.
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