Oil prices surge after attacks in the Middle East: Will crude oil hit $150?
2026-03-19 18:32:42
Tensions in the Middle East and attacks on key energy facilities have raised concerns about supply, coupled with a strong technical breakout, causing oil prices to surge. Geopolitical risks continue to push oil prices further upward.
Oil prices surge after attacks in the Middle East: Will crude oil hit $150?
Oil prices surged due to geopolitical tensions in the Middle East. Following reports of an airstrike on Iran's South Pars gas field (the world's largest gas field), Brent crude prices broke through $110 per barrel, briefly reaching around $112 in early Asian trading before retreating slightly, but the upward trend remained strong.
The energy market reacted swiftly, with concerns about supply disruptions. These concerns stemmed from market expectations of retaliatory action and the continued instability of key energy facilities in the region.
Middle East conflict disrupts supply, pushing oil prices higher.
The recent surge in oil prices was triggered by reports of damage to key energy facilities in Iran and Qatar. The South Pars gas field and the Ras Lafan industrial base are central hubs for global energy supply, particularly liquefied natural gas (LNG), and any disruption to these facilities would immediately trigger market concerns.
According to reports, the fire has been brought under control and there are no reports of casualties, but the extent of the damage to the facilities has raised serious concerns in the market about the sustainability of supply.
Iran's strong response further exacerbated market anxiety. The Iranian military threatened "decisive action," hinting at possible retaliatory strikes against energy facilities.
Meanwhile, prior to this escalation of the conflict, Qatar had already suspended some production due to the conflict, further tightening the supply side. These factors combined to push up the risk premium for oil prices, keeping prices high and providing further upward momentum.
Technical Analysis: Breakout signal indicates continued upward movement
(WTI crude oil daily chart source: FX678)
Following the US and Israeli strikes against Iran, oil prices have shown a strong long-term bullish trend. Oil prices have broken through the downtrend line at $72 and the 200-day moving average near $80 on the weekly chart.
After breaking through these key price levels, oil prices surged above $100 before pulling back to around $80, where they found strong support at the 200-day moving average. Following this support, Brent crude oil prices closed the week above $100.
This breakout suggests that oil prices may move towards the $125-$135 range, which is the minimum short-term target under the current supply shortage. If oil prices consolidate in the $125-$135 range and then break upwards again, and the Strait of Hormuz remains closed, oil prices are likely to rise further to the $200 range.
Brent crude's Relative Strength Index (RSI) is already in severely overbought territory, but even with overbought signals, oil prices are still likely to continue rising in the short term. $100 has become a key support level, and as long as the conflict continues, oil prices are expected to move towards the $200 range.
The monthly chart for West Texas Intermediate (WTI) crude oil also shows that the price has broken through the area marked in red and is now expected to rise to the $125-$130 range, which is marked by a red dotted line.
The surge in volatility within the downward channel suggests a high probability of a strong upward move in oil prices. A break above the $125 resistance level could see prices extend further to the $150 range. If the Strait of Hormuz remains closed and supply shortages occur, oil prices could accelerate towards $200 in the short term.
Oil Price Outlook: Will Crude Oil Reach $150 Next?
Geopolitical risks are providing support for oil prices, with tensions around core energy facilities showing no signs of easing and supply concerns remaining the market focus. Technical analysis also suggests further upside potential for oil prices, having firmly established themselves above the key $100 level with ample bullish momentum.
Short-term oil price movements will depend on the progress of conflicts related to energy infrastructure. If energy supply disruptions persist, oil prices are likely to remain high and move towards $150. The immediate resistance level for Brent crude is in the $125–$135 range.
Oil prices surge after attacks in the Middle East: Will crude oil hit $150?
Oil prices surged due to geopolitical tensions in the Middle East. Following reports of an airstrike on Iran's South Pars gas field (the world's largest gas field), Brent crude prices broke through $110 per barrel, briefly reaching around $112 in early Asian trading before retreating slightly, but the upward trend remained strong.
The energy market reacted swiftly, with concerns about supply disruptions. These concerns stemmed from market expectations of retaliatory action and the continued instability of key energy facilities in the region.
Middle East conflict disrupts supply, pushing oil prices higher.
The recent surge in oil prices was triggered by reports of damage to key energy facilities in Iran and Qatar. The South Pars gas field and the Ras Lafan industrial base are central hubs for global energy supply, particularly liquefied natural gas (LNG), and any disruption to these facilities would immediately trigger market concerns.
According to reports, the fire has been brought under control and there are no reports of casualties, but the extent of the damage to the facilities has raised serious concerns in the market about the sustainability of supply.
Iran's strong response further exacerbated market anxiety. The Iranian military threatened "decisive action," hinting at possible retaliatory strikes against energy facilities.
Meanwhile, prior to this escalation of the conflict, Qatar had already suspended some production due to the conflict, further tightening the supply side. These factors combined to push up the risk premium for oil prices, keeping prices high and providing further upward momentum.
Technical Analysis: Breakout signal indicates continued upward movement
(WTI crude oil daily chart source: FX678)
Following the US and Israeli strikes against Iran, oil prices have shown a strong long-term bullish trend. Oil prices have broken through the downtrend line at $72 and the 200-day moving average near $80 on the weekly chart.
After breaking through these key price levels, oil prices surged above $100 before pulling back to around $80, where they found strong support at the 200-day moving average. Following this support, Brent crude oil prices closed the week above $100.
This breakout suggests that oil prices may move towards the $125-$135 range, which is the minimum short-term target under the current supply shortage. If oil prices consolidate in the $125-$135 range and then break upwards again, and the Strait of Hormuz remains closed, oil prices are likely to rise further to the $200 range.
Brent crude's Relative Strength Index (RSI) is already in severely overbought territory, but even with overbought signals, oil prices are still likely to continue rising in the short term. $100 has become a key support level, and as long as the conflict continues, oil prices are expected to move towards the $200 range.
The monthly chart for West Texas Intermediate (WTI) crude oil also shows that the price has broken through the area marked in red and is now expected to rise to the $125-$130 range, which is marked by a red dotted line.
The surge in volatility within the downward channel suggests a high probability of a strong upward move in oil prices. A break above the $125 resistance level could see prices extend further to the $150 range. If the Strait of Hormuz remains closed and supply shortages occur, oil prices could accelerate towards $200 in the short term.
Oil Price Outlook: Will Crude Oil Reach $150 Next?
Geopolitical risks are providing support for oil prices, with tensions around core energy facilities showing no signs of easing and supply concerns remaining the market focus. Technical analysis also suggests further upside potential for oil prices, having firmly established themselves above the key $100 level with ample bullish momentum.
Short-term oil price movements will depend on the progress of conflicts related to energy infrastructure. If energy supply disruptions persist, oil prices are likely to remain high and move towards $150. The immediate resistance level for Brent crude is in the $125–$135 range.
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