Snapshot: Brent Crude is currently trading at $112.10, down 1.52% on the session, after the prior day’s 4.4% surge. Investors appear to be discounting heightened geopolitical risk despite reported US-Iran clashes and attacks on UAE oil infrastructure. Focus shifts to the 10:00 ET US data dump: ISM Services PMI, JOLTS, and New Home Sales.
- Immediate resistance sits at $114.43 (day high), break below $111.39 (day low) would signal further downside.
- Watch for potential flare-ups in the Strait of Hormuz, particularly given shipowners’ ongoing security concerns; any significant escalation would quickly reverse this dip.
Bias into NY: Short-term bearish as markets reassess the risk premium, targeting $110, but any surprises in the 10:00 ET data could easily trigger a whipsaw. The DXY strength to 98.26 provides a modest headwind but is very much secondary to the shifting geopolitical narrative.