**BREAKING: WTI Crude Reverses Four-Day Slide on US-Iran Military Action**
West Texas Intermediate crude oil prices rebounded sharply Tuesday morning in Asian trading, climbing toward $91 per barrel after hitting $90.60, reversing a four-day losing streak. The sudden reversal follows US military forces conducting self-defense strikes in southern Iran on Monday, immediately reigniting supply disruption fears across global energy markets.
The strikes mark a significant escalation in Middle East tensions, with traders now pricing in heightened risk premiums for potential supply chain interruptions from the critical Persian Gulf region. Energy market participants are closely monitoring any Iranian response that could threaten the Strait of Hormuz, through which roughly one-fifth of global oil supplies transit daily.
Traders should expect continued volatility as geopolitical developments unfold, with oil-linked currencies including the Canadian dollar and Norwegian krone likely experiencing correlated movements. Energy sector equities may see immediate upward pressure at market open.
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FXnCO Insight
** Energy traders should implement wider stop-losses and reduce position sizes given elevated geopolitical risk, while monitoring USD/CAD for potential downside as oil prices strengthen.
Source: FXStreet