Forex▼ Bearish
Brent Retreats from $100 as Saudi Coalition Offer Eases Supply Risk
Saudi Arabia's maritime coalition proposal sent Brent crude below $100 as tanker traffic resumed. The technical setup shows a neutral RSI with support at $86.80 and resistance at $94.60.
Continue with
Brent crude rose above $100 on 23 July after reports of attacks on tankers and infrastructure in the Red Sea and strong statements from Donald Trump toward Iran over shipping security through the Strait of Hormuz. The move proved short-lived. On 30 July, Saudi Arabia proposed creating a maritime coalition to protect key shipping routes. By 31 July, tanker traffic through the Strait of Hormuz had partially resumed, according to CNBC data. The Islamic Revolutionary Guard Corps claimed attacks on vessels under US escort. Western maritime authorities have not confirmed those claims.
The coalition proposal could reduce the geopolitical risk premium priced into crude if diplomatic progress continues. Shipping insurance rates for Red Sea transits, which spiked after the initial attacks, may begin to normalize. Iran's response to the coalition remains a wildcard; unconfirmed IRGC claims suggest Tehran is not backing down. The partial resumption of tanker traffic, while not full, marks a shift from the peak tension on July 23.