Strait of Hormuz Closure Raises Recession Risk Similar to 2008

Although the closure of the Strait of Hormuz increases recession risks, it may suppress oil prices in the short term by reducing demand. Technical indicators already show a weak outlook: RSI at 41 is near the sell zone, MACD is below the signal line, and the price is below both the 20-day and 50-day moving averages. The 1.1% decline in the last 24 hours confirms negative momentum. However, given the potential for geopolitical risks to cause supply disruptions, an overly bearish outlook may be risky.

Although the closure of the Strait of Hormuz increases recession risk, it may suppress oil prices in the short term by reducing demand. Technical indicators are already weak: RSI at 40, MACD below the signal line, and price below both the 20-day and 50-day moving averages. The 1.28% decline in the last 24 hours indicates continued selling pressure. However, if geopolitical risks cause supply disruptions, the direction of prices could change, so confidence is moderate.

Although the closure of the Strait of Hormuz threatens oil supply and increases uncertainty in the energy sector, XOM stock is already trading weakly with a 3.6% decline. With the RSI approaching the oversold zone at 41, and the MACD below the signal line and in negative territory, short-term momentum appears weak. Trading below the 20-day SMA (158.5) and 50-day SMA (156.4) levels further darkens the technical outlook. The news could fuel recession fears and create a negative perception of oil demand, adding further pressure on XOM. However, since the stock is already declining, the possibility of entering oversold territory may limit further downside.

The closure of the Strait of Hormuz is threatening oil supply, creating uncertainty in the energy sector. CVX shares have fallen 2.3% in the last 24 hours, with an RSI of 44 indicating weak territory. The MACD remains below the signal line, suggesting negative short-term momentum. The price is trading below the 20-day moving average but remains close to the 50-day average. With rising geopolitical risks, further selling pressure on the stock may be seen.