Peace hopes are pulling Brent back towards a critical support zone
Oil prices are falling sharply as talks of peace between the US and Iran raise hopes that the Strait of Hormuz will remain open and that crude will continue to flow out of the region. That shift in sentiment has pulled Brent below $100 and pushed the market back towards an important support range between $93 and $96.
This area matters because it has already proved its importance once before. The last time Brent traded in that range was in early April, and support held firmly enough to help trigger a rebound towards the highs near $119.
The same area could now become the neckline of a double-top pattern
The technical setup is more fragile this time because Brent may be forming a double top. If the market breaks below the $93-$96 region, that area would begin to act as the neckline of the pattern and could confirm a broader bearish reversal.
In that scenario, Brent could move back towards the levels seen before the war shock in late February, around $72. That makes the current support zone one of the most important technical thresholds in the market right now.
Brent crude, daily
Sources: TradingView, Michael J Kramer.
