WTI Crude Eyes Bullish Flag Target Amid Ongoing Persian Gulf Tensions

The crude oil market has been on a rollercoaster ride due to ongoing tensions in the Persian Gulf. The price of WTI crude initially pulled back after gapping higher on Monday, but then surged again as Iranian military officials hinted at destroying aggressive entities and imposing tight controls on any memorandum of understanding.

This never-ending drama is influencing the flow of oil, with Iran likely to keep the Strait of Hormuz closed or heavily restricted. As a result, oil prices are being driven by headlines rather than fundamental factors. A bullish flag formation in the oil markets could lead to a measured move and a potential price target of $93.

Brent crude is also rallying, currently threatening the psychological barrier of $90. If it breaks through this level, it could open up a larger move. The Brent market is sitting just above its 50-day EMA and the $85 level, which are both key support levels to watch.