Crude Oil Pulls Back from Monthly Highs Amid Middle East Tensions
The price of crude oil has pulled back from its monthly highs despite ongoing tensions in the Middle East. According to market analysts, this unexpected move is largely due to Saudi Arabia's recent increase in Gulf crude loadings and restoration of its East-West pipeline and Yanbu export operations.
This development has led investors to anticipate possible diplomatic progress between the US and Iran, easing immediate supply concerns. Razan Hilal, a StoneX Media Market Analyst, notes that momentum on both WTI and Brent crude benchmarks has rolled over from overbought territory last seen in 2026.
The energy sector ETF has also slipped back below an 18-year resistance level that capped higher highs from 2008 onward. Hilal breaks down the daily charts for WTI and Brent crude alongside the long-term picture in the energy sector ETF, highlighting the escalation route with US midterm elections shaping the near-term narrative across energy markets.