🔸Based on technicals it's entirely possible. Looking at the daily price
chart of Brent Oil we can spot a sequence of lower lows having said
that prices are also compressing in a falling wedge price structure which
could indicate a swift reversal off the lows near 65 USD/bbl.

🔸Potential price targets for Brent at 100/110 USD bbl if the tensions
escalate further in 2025, which is almost guaranteed at this stage.

🔸The possibility of an Israel-Iran conflict has escalated tensions in the Middle East, which is putting upward pressure on oil prices. Although Israel has not yet officially declared war on Iran, there is ongoing speculation about Israeli strikes on Iran's oil infrastructure in response to missile attacks and Iran's support for militant groups like Hamas and Hezbollah. Such actions could significantly disrupt the global oil market.

🔸If Israel were to target major Iranian oil facilities, such as Kharg Island, which handles the majority of Iran's oil exports, global oil prices could spike dramatically. Analysts suggest prices could exceed $100 per barrel and might even reach as high as $200 if the conflict spreads to other regional oil producers or if key shipping routes like the Strait of Hormuz are disrupted. This scenario would impact not only fuel prices but also inflation globally, reviving economic fears similar to those seen during the 1970s oil crisis​

🔸At the moment, oil prices have already seen increases due to the broader conflict, but the market has remained relatively stable thanks to diversified supplies from the U.S. and other non-Middle Eastern producers​

🔸However, if the situation deteriorates further, particularly with attacks on critical energy infrastructure, more significant price hikes are likely.

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