The rollercoaster ride continues as we see oil prices move back up to start the new week today. That comes amid heightened tensions in the Middle East as Iran and Israel are involved in military exchanges since the weekend. Missile strikes are keeping up even until this morning and Iran is not shying away from placing the blame on the US in all of this.
Despite once again US president Trump reaffirming that a deal is “very close”, the reality of the situation begs to differ.
And as we get things going this week, we’re not closer to a deal than in the past week and even the week before that. As a reminder, the talk of the town two weeks ago was that a deal was “imminent”. Yet, here we are now.
As the ceasefire is breached and the US/Israel continues to keep crossing one of Iran’s key red lines, a framework agreement certainly does not seem to be in the offing. And as such, we’re seeing oil prices move back up again to start the week.
WTI crude is up 4.5% to $94.60 and is recovering back the drop from the second half of last week.
The chart presents an interesting technical situation with a flag/narrowing wedge pattern developing now. As tensions start to heat back up, the price action in oil suggests that a technical breakout may follow soon enough
