Extension deadline to boost oil prices?WTI CRUDE OILTVC:USOILWiseLeoTradingMiddle East geopolitical tensions have entered a 6th week, aligning with the initial expectations of US President Donald Trump. However, current regional instability may necessitate extending the ceasefire deadline today. Concurrently, Iran has rejected the US ceasefire proposal and demanded financial compensation from the US. The current conflict dynamics differ from previous tariff-driven shifts; the war threatens to stifle global economic expansion, particularly in Asia, which relies on the Persian Gulf for 80% of its oil imports. Meanwhile, rising USOIL demand has pushed prices higher, creating a positive premium over Brent. This trend risks elevating US inflation, potentially spilling over from the energy sector into broader sectors of the economy. Consequently, the US may intensify pressure on the Iranian government to reopen the Strait of Hormuz and exit the costly conflict, a move that could further accelerate the oil price surge. Technical Analysis USOIL trades above both extension EMAs and maintains a higher swing, confirming a sustained uptrend. Bullish Scenario: If USOIL remains above 115.00 and the trend line, the price may test the 123.00 resistance level. Bearish Scenario: Failure to maintain the 115.00 level could see the price drop toward the immediate support at 105.20 By Van Ha Trinh - Financial Market Strategist at Exness