Brent Oil Hits One-Month High as Strait of Hormuz Closure Stirs Supply Fears

Brent crude rose to a one-month high on Tuesday, extending gains after the closure of the Strait of Hormuz intensified supply fears. The waterway, a chokepoint for about a fifth of global oil shipments, was shut following renewed US-Iran hostilities. The closure raised fears of prolonged supply disruptions that could tighten crude markets already squeezed by OPEC+ cuts.

The front-month contract broke above its 200-day moving average of $78.53 and the $80 psychological barrier on Monday. Tuesday's advance pushed prices toward the $88.87 Fibonacci retracement level, a 38.2% mark from the 2022 high to the 2023 low. The daily chart also formed a golden cross, with the 5-day moving average crossing above the 200-day average, a bullish technical signal.

The $82 level is support, and $90 is resistance. Brent crude last traded at $87.50, a one-month high.