Crude Oil Approaches $70 Threshold as Geopolitical Risks Mount

Oil prices recorded a sharp uptick on Thursday, extending gains for a third consecutive day as geopolitical friction in the Middle East returned to the forefront of market concerns. Brent Crude and major benchmarks are nearing the psychological $70 per barrel level amid growing apprehension regarding potential military action involving the United States and Iran.

Supply Disruption Fears

The rally is primarily driven by risk pricing regarding supply security in the Persian Gulf. Traders are reacting to reports suggesting an increased likelihood of a US military strike against Iranian targets. Such a conflict would almost certainly disrupt shipping lanes and output from one of the world's most critical energy-producing regions.

Technicals & Market Impact

• Resistance Level: $70.00
• Key Benchmarks: Brent Crude and Nigerian Crude
• Market Driver: Potential Fed policy sensitivity to inflationary energy spikes.

The geopolitical premium is supporting commodity-linked currencies, while simultaneously adding inflationary pressure to the global outlook. Analysts warn that if the rhetoric translates into physical confrontation, the $70 resistance level could be breached swiftly.