US Energy Agency Assumes Strait of Hormuz Will Remain Closed Until End of May

The closure of the Strait of Hormuz could increase global energy costs, creating inflationary pressure and potentially negatively impacting technology stocks. GOOGL stock is already exhibiting a technically weak outlook, with an RSI of 42 below the neutral zone, MACD below the signal line, and the price trading below both the 20-day and 50-day moving averages. The 2.3% decline over the past 24 hours indicates continued selling pressure. With rising geopolitical risks, the bearish trend is likely to persist in the short term.

The closure of the Strait of Hormuz could lead to a significant contraction in global oil supply, potentially providing upward support for Brent crude prices. Technically, while the RSI is neutral at 50, the MACD remains in positive territory despite being below the signal line. The price is trading just below the 20-day moving average (107.24), but staying above the 50-day average (105.79) indicates medium-term strength. Supply disruption concerns stemming from the news could push prices higher in the short term, but surpassing the 20-day moving average will be crucial for sustaining the upward momentum.

The continued closure of the Strait of Hormuz could lead to a significant contraction in global oil supply, potentially supporting WTI prices to the upside. Technically, while the RSI stands at 51.47 in neutral territory, the MACD remains in positive territory despite being below the signal line. The price is trading just below the 20-day moving average (101.54) but remains above the 50-day moving average (99.93), maintaining a medium-term uptrend. Supply disruption concerns stemming from the news could push prices higher in the short term, though the 20-day moving average should be monitored as a resistance level.

The continued closure of the Strait of Hormuz could restrict oil supply and push energy prices higher. Exxon Mobil (XOM) shares have risen 3.2% in the last 24 hours, with the RSI at 60.6, indicating a buying zone. The MACD line is above the signal line and positive, supporting short-term upward momentum. The price is above both the 20-day and 50-day moving averages, reflecting a technically strong stance. However, geopolitical risks may already be priced in, and any news of a potential supply increase could have a reverse effect.