Iran-US Draft Agreement: Strait of Hormuz to Reopen, Oil Sanctions to Be Lifted

While the news is positive for the energy sector due to expectations of reduced geopolitical risks and increased oil supply, it may have an indirect impact on technology stocks such as GOOGL. Lower oil prices generally support consumer spending and advertising revenues, which could be a mildly positive catalyst for Alphabet. Technically, although the RSI is just below 50 and the MACD is below zero, the price has managed to stay above the 20-day SMA. While upside potential is limited in the short term, a slight recovery can be expected alongside the optimism generated by the news.

The news indicates that an Iran-US agreement would open the Strait of Hormuz and lift oil sanctions, creating expectations of a significant increase in global oil supply and exerting downward pressure on Brent prices. Technical indicators support this view: although the RSI at 37 is near oversold territory, the MACD is below zero and below its signal line, suggesting continued bearish momentum. The price is trading below the 20-day and 50-day moving averages and has lost 2.67% in the last 24 hours. The short-term downtrend is expected to persist, though some consolidation or a slight upward correction is possible due to oversold conditions.

The news indicates that an Iran-US agreement could open the Strait of Hormuz and lift oil sanctions. This development creates expectations of increased global oil supply, potentially exerting downward pressure on prices. Technical indicators already show a weak outlook: RSI at 38.7 is near oversold territory, MACD is below zero and below its signal line, and the price is below both the 20-day and 50-day moving averages. The 2.46% decline in the last 24 hours may have partially reflected the impact of the news. The downtrend is expected to continue in the short term, although the low RSI level could signal a possible buying rebound.

The news could create expectations of increased oil supply, potentially putting pressure on oil prices. XOM stock is already exhibiting a technically weak outlook, with an RSI of 38 nearing oversold territory and the price trading below both its 20-day and 50-day moving averages. The MACD line is below the signal line and in negative territory, indicating continued short-term bearish momentum. The 1.22% decline over the past 24 hours, combined with negative news flow, could amplify selling pressure. However, the low RSI level suggests that the possibility of a short-term bounce cannot be entirely ruled out.