Brent - Why Is Oil Falling?
The fresh strikes on Iran were launched last night, with new waves still coming. Normally, that headline alone would send oil sharply higher. Instead, Brent trades near $93 today, below yesterday's close. What's going on?
The market is reading the strikes as pressure, not as a new war. Israel and Iran agreed this week to stop attacking each other. Trump says the talks with Tehran are in their final stage and that the conflict could be over within two weeks. Traders are betting on a deal, not on escalation.
Two more things are weighing on oil. China, the world's biggest oil buyer, cut its imports to the lowest level in more than eight years. And OPEC+ keeps raising production quotas, adding more supply for July.
But this view is fragile. The Strait of Hormuz is still blocked, and if Iran responds to the strikes with force, or the talks collapse, oil can jump back above $98 very quickly. Today's US inflation report adds one more reason for sharp moves across all markets.
Brent key levels:Resistance $95, then $98.Support $89.50, then $87.
Watching: Iran's response to the strikes, peace talk headlines, today's US inflation report (CPI).
By Born2trade market research department
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