Brent crude spiked above $100 in late July after reported attacks on Red Sea shipping and sharp warnings from Donald Trump to Iran over the Strait of Hormuz. The rally has since faded after Saudi Arabia proposed a maritime coalition to protect shipping routes, though unconfirmed reports of new incidents in the strait keep the market on edge.
Brent crude climbed above $100 on 23 July 2026 after reports of attacks on tankers and infrastructure in the Red Sea area, alongside strong statements from Donald Trump toward Iran over threats to shipping security through the Strait of Hormuz. That spike proved short-lived.
Saudi Arabia proposes a maritime coalition
On 30 July, Saudi Arabia proposed creating a maritime coalition to protect key shipping routes amid the ongoing confrontation between the US and Iran. The initiative could gradually reduce the geopolitical risk premium priced into oil if diplomatic efforts keep making progress.
According to CNBC data from 31 July, tanker traffic through the Strait of Hormuz partially resumed. The Islamic Revolutionary Guard Corps claimed attacks on vessels under US escort, but Western maritime authorities have not confirmed these claims.
Technical picture points to a neutral market
On the four-hour XBRUSD chart, the asset formed a short-term trend from the start of July, moving from around $71 toward the $102 area, before that trendline broke and the current market profile took shape. Price now trades between the Point of Control zone at $92.20 and the upper boundary of the profile at $94.60. A break above that boundary could open the way toward the red resistance level at $98.50.
If price instead moves below the POC zone, the next area of interest is a cluster of two levels: the lower profile boundary at $86.80 and the green support level at $85.30. The RSI + MAs indicator shows readings of 58, 51 and 51, with all oscillator values back in the neutral zone after a period of elevated volatility. Trading volume remains relatively high, pointing to continued interest from participants.
Unconfirmed reports of incidents in the Strait of Hormuz still leave room for increased volatility, and the neutral RSI + MAs readings point to no clear directional momentum for now.
Source: ActionForex
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