Brent Crude Rises Amid Escalating US-Iran Tensions

Brent crude oil prices continued their upward trend last week, reaching $102.60, its highest level since September 23rd. This rebound may persist as tensions between the US and Iran escalate, with rising odds of a conflict in October.

The US and other G7 countries released 100 million barrels of oil from strategic petroleum reserves (SPR) to combat rising prices, but this move has not been enough to deter the upward momentum of Brent crude. The crisis between the US and Iran is set to worsen, with the US sending a new aircraft carrier to the Middle East and Trump warning that he may need to escalate after the US election.

Iran may seek to push up oil prices by launching strikes against US targets in the region, which would prompt a response from the US. There are also concerns about attacks on oil infrastructure in Russia and Saudi Arabia, including a major refinery targeted by Houthis in Saudi Arabia. These events have added to supply risk premium, keeping prices elevated.

The technical indicators suggest that Brent crude will continue to rise, with a next upside target of $109.96, then $115. The price remains above the ascending trendline and Supertrend indicator, indicating a bullish trend.