Oil Surges 9% After Trump Orders Naval Blockade of Iran

Traders are watching whether the blockade will cut flows through the strait to zero, as happened during the previous blockade in 2019. Global oil reserves were significantly depleted during that episode, and a repeat could push prices toward levels seen in April and May, traders said.

WTI crude was trying to settle above resistance at $74.50 to $75.00. A break above that zone would open a path toward $80.00 to $80.50, the next resistance level. The relative strength index remains in moderate territory, leaving room for further upside.

Brent crude was testing resistance at $81.00 to $81.50. A move above that level would target the $86.00 to $86.50 range.

Natural gas, by contrast, was falling. The front-month contract settled below the $3.00 to $3.05 support zone and was testing $2.90. The EIA's latest storage report showed inventories building faster than expected, which has kept a lid on prices even as weather forecasts call for above-average demand over the next seven days. A break below $2.90 would put the $2.75 to $2.80 support level in play.