Oil prices have continued to rally amid the effective closure of the Strait of Hormuz and wider escalation in the Middle East, with WTI & Brent rallying by more than 8%, breaching yesterday’s highs.
- U.S. President Trump has stressed that the U.S. will do "whatever it takes" to achieve its military objectives in Iran. Several senior U.S. officials have signalled an impending significant expansion in in strikes.
- Elsewhere, recent comments from the IEA point to a readiness to stabilise the oil market, ahead of holding an Iran-centric meeting later today.
- Some sell-side names have suggested that the effective closure of the Strait of Hormuz and continued attacks on shipping vessels/infrastructure are likely to persist for at least four weeks, with disruptions to LNG & oil flows lasting longer.
- Fibonacci projections ($84.42 for Brent & $78.05 for WTI) present the next upside targets of note.