UKOIL | Brent Oil Surge After War – But Is a Sharp Drop Coming?

By analyzing the #BrentOil chart on the weekly timeframe, we can see that price experienced a massive rally after the escalation of tensions and the war involving Iran, Israel, and the United States, pushing oil sharply higher and reaching levels near $120. However, after this strong rally, the market entered a corrective phase. Policies introduced by the Trump administration and the G7, along with the decision allowing countries to continue purchasing Russian oil for an additional 30 days, helped ease supply concerns and triggered a pullback in prices.

Currently, Brent Oil is trading around the $100 region, while the market remains extremely volatile. One of the main reasons behind this volatility is the geopolitical risk surrounding the Strait of Hormuz, through which nearly one-fifth of the world's oil supply passes. With Iran temporarily closing this critical route, many traders still expect the possibility of further upside in oil prices.

However, if we carefully analyze the chart structure, we can clearly see a liquidity void between the $73 and $76 region that formed during the strong impulsive rally. From a technical perspective, markets often tend to revisit and fill these liquidity gaps. For this reason, despite the current bullish sentiment in the market, I expect that Brent Oil could experience a sharp and relatively fast decline in the short term, potentially moving toward the $76 – $73 zone to fill this liquidity imbalance. All key levels and structural zones are clearly marked on the chart for reference.

As always, this analysis will continue to be updated step by step as price reacts to the next important levels.

Please support me with your likes and comments to motivate me to share more analysis with you and share your opinion about the possible trend of this chart with me !

Best Regards , Arman Shaban