Saudi-Houthi Tensions Meet Major Oil Price Resistance

Crude oil prices are facing significant resistance as tensions between Saudi Arabia and Houthi rebels escalate, along with ongoing US-Iran conflict. Despite recent attacks on Saudi energy facilities, markets may be shifting from an imminent supply shock to a prolonged but manageable conflict.

The key resistance levels for Brent (UKOIL) stand at $108, which is a 7-month trendline that previously served as support between March and June 2026, combined with the 78.6% Fibonacci retracement of the March-July decline. Similarly, WTI (USOIL) faces resistance at $104.50, which corresponds to its own 7-month trendline and the 78.6% Fibonacci retracement.

Traders are increasingly focused on whether political and economic pressures will encourage all sides to avoid actions that could trigger another major spike in energy prices. This includes upcoming elections in Israel (October 27) and the US (November 3), which may influence regional developments and oil price movements.