Market sentiment shifted as WTI crude oil prices rose approximately 1.4% following reports of U.S. military strikes on facilities in southern Iran. This development comes after a period of declining energy commodity prices, fueled by optimism in earlier trading sessions. Ongoing negotiations between the U.S. and Iran, focused on finalizing language for a potential agreement, are contributing to market volatility as investors await clarity on the situation.

The recent geopolitical tensions are creating a complex environment for oil traders. While the market is currently in a correction phase, with key support at the psychological level of $90, a drop below this could signal further declines towards $85, as indicated by technical analysis. The bearish sentiment is reinforced by price movements below short-term moving averages, although the long-term trend remains intact.

For market professionals, the key takeaway is to monitor the developments in U.S.-Iran negotiations closely, as any shifts could significantly impact oil prices and overall market sentiment.

Source: xtb.com