US Proposes $10 Billion Fund to Bypass Strait of Hormuz

The news indicates a fund proposal to reduce dependence on the Strait of Hormuz; while this could enhance supply security in the long term, it may lower geopolitical risk perception in the short term. However, Brent price has risen 2.97% in the last 24 hours and is above $99, with RSI at 52 (neutral) and MACD slightly above the signal line. Since the news does not imply a direct supply disruption and the fund is still in the proposal stage, the impact may be limited. In the short term, upward momentum may persist, but the uncertainty created by the news could cause volatility. Therefore, I assess the direction as 'up', but with moderate confidence.

The news alleviates supply security concerns with a fund proposal to reduce dependence on the Strait of Hormuz; this could lower the geopolitical risk premium and create downward pressure on WTI. The price is already below the 20 and 50-day moving averages at 90.26 and has fallen 2% in 24 hours, with RSI at 40 confirming weak momentum. MACD is in negative territory and very close to the signal line, so the downward momentum is not yet strong. In the short term, the 89-90 support zone may be tested; however, since the news will not have an immediate concrete supply impact, the decline may be limited. Nevertheless, the current technical outlook and news tone support the downward trend.