Tag: US-Iran conflict

  • Oil Hits One-Month High as US-Iran Conflict Disrupts Strait of Hormuz Shipping

    Oil Hits One-Month High as US-Iran Conflict Disrupts Strait of Hormuz Shipping

    Oil prices surged to their highest level in four weeks on Tuesday as renewed hostilities between the United States and Iran disrupted tanker traffic through the strategic Strait of Hormuz, raising fresh concerns over global energy supplies.

    Brent crude futures climbed 3.29% to $86.04 a barrel, while U.S. West Texas Intermediate crude gained 2.83% to $80.35, both reaching levels not seen since mid-June. The move extended a sharp rebound that began after hopes for a lasting peace agreement faded over the weekend.

    The latest rise followed a 9.6% jump in Brent during the previous session, its largest one-day gain since May 2020. Traders reacted after Washington restored its naval blockade of Iranian shipping and proposed a 20% fee for vessels using the waterway. The U.S. also carried out a third consecutive night of strikes against Iran, which responded with attacks on military sites and commercial vessels. Two United Arab Emirates tankers were hit in Omani waters, according to the UAE Ministry of Defence, resulting in the death of one Indian sailor and injuries to eight crew members.

    Shipping activity through the Strait of Hormuz dropped to a two-month low as vessel operators assessed the growing security risk. The route carries about one-fifth of global oil and liquefied natural gas supplies. MarineTraffic recorded 57 transits from Friday through Sunday, down more than 50% from the previous week, compared to roughly 130 vessels per day before the conflict escalated in late February. Iran declared the strait closed “until further notice,” while Washington said military escorts kept oil moving.

    Market analysts said the next price move would hinge on whether tanker traffic and export volumes fall further. Priyanka Sachdeva of Phillip Nova noted that a prolonged drop in vessel movement could push oil prices higher, but prices could ease if crude shipments continue through the strait. ANZ analyst Soni Kumari placed oil in an $85-to-$90 range if disruptions persist, while TD Securities strategist Bart Melek warned that Brent could approach $100 if signs of a physical shortage emerge.

    Meanwhile, Iran’s oil minister said the country’s crude exports were operating normally despite the end of a U.S. sanctions waiver. Yemen’s Houthi movement also fired missiles at Saudi Arabia after accusing the kingdom of bombing an airport under its control. In a separate development, China’s June crude imports fell 41.3% to their lowest level in almost a decade, and refinery activity reached a 10-year low amid weak domestic demand and export limits.

  • Indian Stock Market Update: Nifty 50 Holds Above 24,000, Sensex Targets 77,800 as Global Volatility Persists

    Indian Stock Market Update: Nifty 50 Holds Above 24,000, Sensex Targets 77,800 as Global Volatility Persists

    The Indian stock markets are expected to open lower amid weak global cues, as the ongoing US-Iran conflict continues to weigh on risk sentiment. GIFT Nifty also indicates a gap-down start, trading at 24,056 with a discount of 187 points from its previous Nifty futures close.

    On Monday, the Sensex gained 47.01 points or 0.06% to settle at 77,616.40, while the Nifty 50 rose 4.10 points or 0.02% to finish at 24,211. The broader markets, Nifty Midcap 100 and Nifty Smallcap 100, ended on a flat note. The Indian rupee opened 32 paise lower at Rs. 95.94 per dollar on Tuesday against Monday’s close of Rs. 95.62.

    Sensex Outlook

    Technically, the Sensex formed a bullish candle on the daily chart and recovered its morning losses.

    “The 77,000 would act as a key support zone for short-term traders. As long as the market trades above this level, the uptrend wave is likely to continue. On the higher side, 77,800 would act as an immediate resistance for day traders. If the market successfully breaks that level, the rally could continue till 78,000-78,500. On the flip side, below 77,000, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

    Nifty 50 Outlook

    Nifty 50 formed a small bullish candle on the daily chart, reflecting continued buying interest at lower levels.

    With weekly expiry today, traders should be prepared for heightened volatility and sharp intraday swings as derivatives positions are adjusted throughout the session. Right now, 24,000 is the ultimate floor. Slipping below this point will likely trigger a deeper slide and ruin the near-term chart setup. On the flip side, any bounce faces a heavy ceiling in the 24,200 to 24,300 zone. Because global headlines are running the show, upcoming expiry-day hedging could easily whip up extra wild price swings. Traders should avoid aggressive positions at the open and focus on disciplined, level-based execution. Expect volatility to remain elevated throughout the day, especially around key support and resistance levels.

    Bank Nifty Outlook

    On Monday, Bank Nifty rose 5.55 points or 0.15% to close at 58,131.45, forming a bullish candle on the daily chart, indicating buying interest at lower levels.

    It has been consolidating within the 56,500-58,500 range over the last four weeks, indicating a healthy pause after the previous up move. On the upside, 58,700 remains the immediate hurdle, said Bajaj Broking Research. “Failure to move above 58,700 will signal extension of last 4 weeks consolidation. On the downside, 57,400-57,500 is expected to act as the immediate support, coinciding with Thursday’s gap-up zone and Monday’s low. The major support is placed at 56,500, where the 20-week and 50-week EMAs converge along with the previous week’s low, making it a strong demand zone,” the brokerage added.

    Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments.