Optimistic statements by Donald Trump regarding negotiations with Iran put pressure on oil futures toward the end of the week. As a result, US WTI crude broke below $85.00 per barrel and declined to $79.00.
Over the weekend, the situation in the Middle East escalated again, leading to a strong start to the new trading week. Prices rebounded to resistance around $88.50. The nearest support is currently located near $86.40. Demand from this zone could help push prices above resistance and drive WTI higher toward $90.00–$91.50 per barrel.
Developments in the Middle East will continue to be the key driver of oil futures. Any improvement in geopolitical conditions may trigger selling pressure, while further escalation is likely to support renewed buying. In the near term, high volatility in the futures market is likely to persist, and traders should be extremely cautious.
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