WTI crude surges 35% weekly to close above $90/barrel, marking largest weekly gain since 1983

Brent crude rises 28% past $90 resistance, breaking 28-month descending trendline and 200 SMA at $80

Strait of Hormuz disruptions halt 7-11 million barrels daily, representing ~16 million bpd total flow cessation

Market Overview

WTI breaks above $90 key resistance with bullish momentum, next targets at $110 then $125-$150 zone

Brent surpasses $80-90 resistance cluster, technical breakout confirms sustained uptrend toward $100 target

Diesel futures surge over 50%, indicating refined product supply tightness amplifying crude rally

Support levels established at WTI $85-87 zone and Brent $85-88 area following the breakout

Core Driving Factors

U.S.-Israeli strikes on Iran trigger retaliatory attacks, causing Strait of Hormuz near-closure and shipping halt

Gulf producers including Kuwait, UAE, and Iraq cut production due to storage capacity constraints and facility attacks

Saudi Arabia shuts largest refinery while Qatar closes world's biggest LNG export plant following drone strikes

JPMorgan estimates supply losses could reach 6 million barrels per day if Hormuz remains inaccessible

Trading Strategy

Consider hedging with deferred-month put/call options to manage volatility exposure amid price spikes

Monitor OPEC+ signals and strategic petroleum reserve releases for potential reversal signals

Limit position sizes and use strict stop-losses given unprecedented market conditions and extreme volatility

Risk Warning

Geopolitical escalation could push prices to $150/barrel, potentially triggering global economic disruption

Extreme volatility signals heightened inflation risk and significant transport cost pressures globally

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