Stock Market Rally:
Equity markets surged as investors welcomed Iran’s measured response to the recent U.S. airstrike.
- Dow Jones rose by 0.89%
- S&P 500 gained 0.96%
- Nasdaq climbed 0.94%
Oil Price Plunge:
West Texas Intermediate (WTI) crude dropped over 7%, settling at $68.51 per barrel, as markets anticipated that the conflict would not significantly disrupt global oil supplies.
Conflict Background:
The U.S. launched airstrikes on Iran’s nuclear facilities over the weekend. In response, Iran targeted a U.S. base in Qatar, but the missiles were intercepted with no casualties reported.
Market Commentary:
- President Trump emphasized the need to maintain low oil prices to avoid benefiting America’s adversaries.
- Analysts note that markets will only face serious disruption if oil supplies are directly affected — for example, if Iran shuts down the Strait of Hormuz.
- The U.S. has reportedly asked China, a major importer of Iranian oil, to help prevent such a move.
Analyst Outlook:
Despite heightened geopolitical risks, the market impact remains contained due to several stabilizing factors: global oil supply remains ample, Iran remains isolated diplomatically, and the balance of power is relatively unchanged.
Technical View – WTI Crude:
WTI currently trades in the $64.70 – $65.00 range. On the H4 chart, price action appears to be consolidating near the ascending trendline, with nearest support levels at $62.16 and $59.80.
While prices may test the $62.16 support level, the recent easing of geopolitical tensions suggests that oil prices may stabilize within the $60–$66 per barrel range in the medium term — particularly if global demand, economic growth, and industrial utilization improve.
Overall Trend:
WTI remains in a broad upward trend, with key demand zone seen around $63. Minor downside risk lies at $62 and $59.80.
Disclaimer: This analysis is for informational purposes only and should not be considered as investment advice.
