19 July 2019, OctaFX – Crude oil price rose sharply after the US shot down an Iranian drone in the Strait of Hormuz. This came after the drone reportedly threatened an American warship. The incident took place a few weeks after Iran shot down an American drone that it claimed was in its waters.
It also came a few hours after the Iranian Revolutionary Guard said it had seized a foreign vessel near the region. It detained the crew for allegedly smuggling oil. These events have made oil shipping in the region dangerous and many vessels are now being escorted by warships. Meanwhile, the Iranian foreign minister, Javad Zarif said that his country would not negotiate with the US unless sanctions were lifted.
Crude oil price technical forecast
The price of Brent crude oil rose sharply to a high of $62.80. On the hourly chart, the pair is above the 23.6% Fibonacci Retracement level. The price is along the 25-day exponential moving averages and slightly below the 50-day moving averages. The RSI has emerged from the oversold level to the current 48. The price is along the middle line of the Bollinger Bands. The pair will likely continue moving higher as gulf tensions rise.
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