Geopolitical Grip: Oil Pulls Back From Highs, Hormuz Remains Key Factor

Crude oil price pared some of its  gains due to profit booking. Markets eye further development in geopolitical tension between Israel and Iran.It hits an high of  $77.10 and currently trading around $74.44.

The Strait of Hormuz, a critical chokepoint for approximately 20% of the world's daily oil supply, is at the center of escalating tensions following recent US airstrikes on Iranian nuclear facilities, with Iran's parliament backing a potential closure. While Iranian military leaders maintain this option is "on the agenda," the ultimate decision rests with the Supreme National Security Council, and any such action would severely disrupt global oil flows, potentially driving prices to $100-$150 per barrel or more, exacerbating inflation and risking global economic slowdowns, particularly for energy-importing Asian nations. Despite these threats and international condemnation from the US and EU, analysts consider a full closure highly unlikely due to the immense economic and military repercussions for Iran itself, including alienating allies, disrupting its own exports, and inviting military retaliation, in addition to lacking legal standing to obstruct international shipping lanes.

Price Resistance and Support Levels

The near-term resistance is around $75; any breach above this level could push prices higher to  /$76.07/$77.10/$78. On the downside, immediate support is at $74 violation below targets  $73/$72.30/$70.65/$69.60/$68.60/$66.65/$65.

 It is good to  buy on dips around $73 with a stop-loss around $71.80 and a target price of $76/77.