Crude Oil Surges 5% on Reports of Extended Strait of Hormuz Blockade

Crude oil futures surged by approximately 5% to reach $105.25 per barrel following reports that the Trump administration is discussing a multi-month extension of the Strait of Hormuz blockade. However, prices have begun to retreat in early Thursday trading as short-term technical exhaustion signals emerge after the rapid rally. The market is currently facing downward pressure from key Fibonacci resistance levels and moving averages, which may limit further upside momentum. Technically, oil prices continue to test a critical resistance zone between $105.53 and $106.86, a level that remains pivotal for the next trend. Market participants are now balancing geopolitical supply risks against these technical exhaustion indicators. Volatility remains high as traders await official confirmation of the blockade extension while monitoring technical correction levels.