Middle East Tensions Fuel Crude Price Rally Amid Supply Risks

The escalating conflict in the Middle East is putting upward pressure on crude oil prices. The Houthi attacks on Saudi Arabia's oil infrastructure are causing significant disruptions to supply, and traffic through the Strait of Hormuz remains below pre-war levels.

Russia and Ukraine are also targeting key energy assets, further elevating supply risk. Despite this, Brent crude has formed a break-and-retest pattern, indicating a potential rebound in prices.

The technical setup suggests that Brent could rise towards $110 and potentially even $120, but there is a key risk: rapid de-escalation of the conflict that would restore Saudi/Houthi operations and improve shipping through Hormuz, collapsing the supply-risk premium.