19.03.202608:50 Forex Analysis & Reviews: Oil Prices Return to Growth

Yesterday marked another sharp spike in oil prices, directly triggered by Israeli strikes on energy infrastructure in the Middle East. These actions, aimed at facilities critical to global supplies, have sparked a wave of concern in global markets, driving a significant rise in the price of black gold.

Against the backdrop of escalating tensions, President Donald Trump called for de-escalation. He emphasized that he insists on the cessation of attacks on energy facilities by Israel. This statement came after Iranian and Israeli strikes on major gas hubs had significantly shaken global markets, revealing the vulnerability of the global energy system.

The reaction of world leaders and their attempts to resolve the conflict highlight the seriousness of the escalation's consequences. Strikes on energy infrastructure not only affect oil and gas prices but also pose risks to the global economy's stability. Such events have already led to inflationary pressures, economic growth deceleration, and increased geopolitical uncertainty, which, in turn, negatively affect investor sentiment.

According to media reports, the industrial city of Ras Laffan in Qatar—home to the world's largest liquefied natural gas export plant—sustained significant damage yesterday from an Iranian attack that caused a fire. Israel struck the South Pars gas field, which is a key part of Iran's energy infrastructure.

Trump stated that the US was not involved in the attack on South Pars and added that Israel would refrain from further strikes on this facility. He also noted that any additional Iranian attacks on Qatari LNG facilities would prompt the US to destroy the entire South Pars field.

It is worth mentioning that since the beginning of the war, oil prices have increased by approximately 50%. Meanwhile, countries continue to vie for access and control over the Strait of Hormuz. The US announced that late Tuesday, they dropped 227-kilogram munitions to destroy Iranian bunkers near this waterway. Russia has announced plans to provide naval convoys to protect commercial vessels.

Regarding the current technical picture for oil, buyers need to overcome the nearest resistance at $100.40. This would allow them to target $106.83, above which breaking through may be quite challenging. The further target will be the area around $113.36. In the event of a price drop, bears will attempt to take control of $92.54. If they succeed, breaking through this range would deal a serious blow to bulls' positions and could push oil down to a low of $86.67, with the prospect of reaching $81.38.