Brent Crude Soars Amid Renewed US-Iran Tensions
The Brent crude futures contract has surged by 2.76% to $90.47 per barrel amid renewed tensions between the US and Iran in the Middle East.
According to Reuters, the US struck Iran's Larak Island over the weekend, prompting Tehran to launch missiles at two US air bases in Jordan. The conflict escalated further when Iranian officials declared they possess sufficient military resources to respond forcefully.
The market-implied probability of a rate increase by the Federal Reserve has intensified, rising to 65.4% following the bilateral US-Iran military actions.
From a technical perspective, the Brent contract is navigating a highly volatile consolidation phase, trading above its 200-day Simple Moving Average (SMA) and forming a technical triangle pattern.