Crude Oil Price Surges Again as Israel-Iran Strikes Rattle Markets
- Israeli strikes on Iran followed an Iranian missile attack.
- WTI bounced from near $88.28 at the weekly close back above $91.
- Renewed tensions are overshadowing a planned OPEC+ output increase.
Why Is WTI Crude Oil Surging?
WTI crude oil climbed roughly 3.22% to $91.45 in early Monday trading. The move is being driven almost entirely by geopolitics rather than fundamentals after the Israel Defense Forces struck military targets in western and central Iran, hours after Iran fired a salvo of missiles at northern Israel.
Iranian state television reported explosions in Isfahan, Tabriz, and Tehran, while US President Donald Trump urged Israel not to retaliate for the Iranian strikes. Notably, this geopolitical risk premium is overpowering bearish supply signals, as the latest tension is overshadowing OPEC+'s planned production boost.
Commerzbank’s financial analyst, Norman Liebke, and Carsten Fritsch, said,
“As hopes for an agreement between the US and Iran were dashed once again, the price of Brent crude and European natural gas rose slightly this week.”
They have also added,
"Next week, the US Energy Information Administration (EIA) will release its monthly report, publishing forecasts for both oil supply and demand through the end of 2027 in its Short-Term Energy Outlook (STEO). Most recently, it reported a decline in daily global oil production of approximately 10.5 million barrels per day for March and April."
Technical Picture: Range-Bound but Twitchy
A clean break below $88 would open the door toward $85 and lower, while sustained buying on conflict headlines keeps the upside alive.
Key Support Level: $88
Key Resistance Level: $93
What Advice Should Traders Take from This?
Geopolitics-driven moves are fast and reverse without warning, so caution matters more than conviction here. Traders are monitoring official Hormuz shipping updates and any ceasefire confirmation, since headlines, not charts, are setting the pace now.
So, tight risk management and awareness of the $88/$93 boundaries may help navigate the elevated USOIL volatility rather than chasing momentum.
About the author:
Sarah ThompsonLead Forex Strategist & Financial Writer
Sarah Thompson is a professional Forex trader with over 7 years of experience in the financial markets. She specializes in Forex trading strategies, technical analysis, Gold and Indices market trends, risk management, and performance evaluation. Since joining SureShotFX in 2021, Sarah has authored numerous in-depth articles, reports, and insights for traders of all experience levels.
