Brent Crude Approaches $100 Amid Escalating Middle East Tensions

Brent crude oil prices reached new multi-week highs on Tuesday as escalating tensions in the Middle East raise concerns over disruptions to the critical Strait of Hormuz supply route.

The benchmark grade approached the psychologically significant $100 per barrel mark following recent attacks on energy infrastructure in Saudi Arabia by Yemeni Houthis supported by Iran, heightening regional conflict risks and market uncertainty.

Technical analysis shows a bullish trend emerging from $84.58 (Aug 26 low), with the price breaking above recent consolidation levels and challenging the key $100 barrier. This follows a broader rally from $78.10 (Aug 5 low), though a decisive breach of $100 could trigger substantial market reactions.

Indicators on the daily chart remain favorable, but resistance at the $100 level is likely to test momentum as prices approach overbought conditions.

Market participants may see consolidation or minor pullbacks as opportunities to position for a potential breakout above $100, should geopolitical tensions persist or intensify.

Recent support levels at the 76.4% Fibonacci retracement ($96.34) and previous resistance at $94.81 (Aug 21 peak) now act as critical floor levels to preserve downside momentum.

A sustained break above $100 could open the path to the July 23 intraday high at $101.97.

Resistance: 100.00; 100.72; 101.14; 101.97
Support: 96.34; 94.81; 92.85; 91.25

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