RED SEA

Oil prices eased after a strong rally as tanker movements and alternative shipping routes cooled immediate shortage fears. Still, Middle East supply risks continue to support WTI and Brent, with traders focused on key support and breakout levels.

September natural gas futures are drawing support from summer power demand and resilient LNG export expectations. However, inventories remain above the five-year average, leaving rallies exposed unless heat broadens and storage builds tighten further.

WTI and Brent begin the week with traders focused on whether supply risk around Hormuz, Bab el-Mandeb and Saudi export infrastructure can keep the crude rally alive. Alternative barrels are getting more expensive as refiners chase supplies outside the Middle East while diplomacy competes with continued military escalation.

The S&P 500 moved lower Thursday after opening beneath its 50-day moving average and slipping below a short-term retracement zone that had supported the market for weeks. Traders are watching Friday’s flash PMI data, crude oil developments and whether the VIX can hold above key moving averages before treating the selloff as a deeper shift in risk appetite.

Oil prices are holding a bullish tone as Middle East tensions raise the risk of disruption through the Strait of Hormuz and the Red Sea. WTI has broken above a key area near $85, while Brent’s move above $90 keeps higher targets in focus for technical traders.