WTI crude oil prices eased on Monday following a strong rally of over 5% last week, driven by heightened tensions in the Middle East and ongoing restrictions on shipping through the Strait of Hormuz, according to FX Street.
Despite the recent pullback, FX Street noted that geopolitical risks remain elevated in the region, continuing to support oil prices. Technical resistance also plays a role, with the 100-day simple moving average (SMA) capping gains near the $85 per barrel level.
For Japanese investors, the developments in oil markets underscore the importance of monitoring geopolitical factors that can influence energy costs and impact the broader financial markets, including FX and equities.