Iran's Next Move Could Send Oil Prices Soaring to $119
Crude oil prices have been affected by recent developments in the Strait of Hormuz. The flow of oil through the Strait has increased, helped by the US military's continued provision of escorts to tankers. This has led to a decrease in Brent crude oil price to $97.7 and West Texas Intermediate (WTI) to $90.
The main catalyst for crude oil prices in October will be the expected 'October Surprise', where Iran escalates its actions to push oil prices higher and punish President Donald Trump at the midterm elections. This can happen through various means, such as launching direct attacks on US warships or bombing energy infrastructure in the region.
Technicals suggest that crude oil prices will likely bounce back in the coming weeks. The Brent price has remained above an ascending trendline and found support along the 50-day Exponential Moving Average (EMA). A falling wedge pattern is also forming, which is a common bullish reversal sign in technical analysis.