Crude oil extended its gains into fresh highs in the latest session as the continued lack of positive developments in the Middle East kept upward pressure on prices, according to an InvestingLive analysis. The stakes reach beyond commodity desks: crude is the feedstock for gasoline, diesel and other refined products, so threats to supply flows from the region are closely watched by businesses policymakers alike.

US–Iran negotiations have stalled over the conditions for reopening the Strait of Hormuz, a critical artery for global oil shipments linking the Persian Gulf to the open sea lanes of the Gulf of Oman. Washington insists that Tehran must first address its nuclear programme, while Iran continues to prioritise its own set of conditions, which include the lifting of the US blockade.

Disruptions along the Strait of Hormuz have intensified, with reports of vessels being struck and container ships sinking after hitting naval mines. Iranian officials have also said that they are employing new tactics to target ships.

Meanwhile, the conflict between Saudi Arabia and the Houthis continues to rage. Houthi attacks have targeted Saudi airports and facilities operated by Aramco, the kingdom's state-owned oil company, while Saudi forces have retaliated with strikes against Houthi-controlled areas in Yemen.

The key catalysts to watch, the analysis noted, are any progress in the US–Iran negotiations and any de-escalation in the Saudi-Houthi conflict. US President Donald Trump has ruled out military escalation ahead of the US midterm elections, the nationwide congressional votes held midway through a president's term, though the report cautioned that any such escalation could send oil prices surging higher.

Crude Oil Technical Analysis – Daily Timeframe

On the daily chart, crude oil (CFD contract) briefly probed above the 96.77 level before falling back below it. Sellers piled in around that level, with a defined risk above it, to position for a drop back into the lower bound of the channel. Buyers, the analysis said, need a break above 96.77 to open the door for a rally into the 110.00 resistance.

Crude Oil Technical Analysis – 4-Hour Timeframe

On the 4-hour chart, a minor upward trendline is defining the bullish momentum. Buyers will likely continue to lean on the trendline, with a defined risk below it, to keep pushing into new highs. Sellers, on the other hand, will look for a break lower to extend the pullback into the lower bound of the channel.

Crude Oil Technical Analysis – 1-Hour Timeframe

On the 1-hour chart, the report offered little additional detail: buyers have a better risk-to-reward setup around the trendline, while sellers need a break lower to extend the pullback further. The red lines on the chart define the average daily range for today.