Oil prices climbed after President Trump rejected an Iranian proposal to reopen the Strait of Hormuz and said he expects to resume bombing Iran after the November midterms. The IRNA news agency reported no new round of talks is on the agenda.
Crude oil opened the week higher after a weekend proposal from Iran to reopen the Strait of Hormuz within seven days fell apart. Trump rejected the offer on Saturday and told reporters he expects to resume bombing Iran after the midterms, reversing a brief run of optimism over a near-term resolution.
Talks stall as Iran holds off on new negotiations
The rejection followed a short-lived rebound in hopes for a deal. Earlier last week, Trump said the US would reach an agreement with Iran after the November elections, which had already cooled expectations of a quick de-escalation.
The IRNA news agency then reported that no new round of negotiations with the American side is planned, and that the country's foreign minister will return to Tehran on Tuesday. Crude extended its gains on that news, as traders priced out a swift diplomatic breakthrough.
Technical picture favors further upside
On the daily chart, crude oil climbed back above the 93.00 zone as hopes for a quick US-Iran deal faded, with buyers defending that level to position for a run toward the 110.00 resistance. A break back below 93.00 would open the door to a drop toward the 85.00 handle, the lower bound of the recent trading channel.
Shorter timeframes tell a similar story: the four-hour chart shows an upward trendline defining the bullish momentum, with buyers likely to lean on pullbacks toward it to keep pushing into the 110.00 resistance. The one-hour chart shows equivalent structure, though a break lower there would instead extend the pullback into the four-hour trendline.
What comes next
A breakthrough in US-Iran talks would send oil quickly lower, while a prolonged stalemate or renewed escalation would keep the market supported into new highs, with the timeline of any resolution the main geopolitical risk still facing traders. This week also brings a run of US data, including consumer confidence, job openings, the ADP report, the PCE price index and the NFP report, though the market's focus stays on developments in the Middle East.
Source: Investinglive RSS Breaking News Feed
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