Crude oil price has pulled back slightly over the past 4 days after strong closes last Wednesday and Thursday. That retracement has not damaged the broader structure. Crude oil has been stabilizing around $70, and price action now hints that the oil price could attempt another leg higher.
This pause feels more like consolidation than exhaustion. Momentum cooled briefly. Structure stayed intact. When crude oil price holds firm near a key psychological level after a push higher, traders begin to watch for continuation.
zForexglobal noted that Brent crude is trading around $71.1 following recent losses. The focus now sits on rising tension surrounding US and Iran talks and the risk of disruption in the Strait of Hormuz. That waterway remains one of the most critical arteries for global crude oil supply. Any threat to traffic through that corridor can lift oil price quickly due to supply concerns.
🛢️ #Brent is trading around $71.1 after recent losses. The main driver is rising tension around US–Iran talks and the risk of disruption in the Strait of Hormuz. If tensions escalate, oil could move higher quickly due to supply fears. pic.twitter.com/5x40i9xYdq
— zForexglobal (@zForexglobal) February 25, 2026
Crude oil markets react fast to geopolitical stress because energy supply disruptions ripple across economies. Risk in the Middle East rarely stays local. It feeds directly into pricing models for crude oil and Brent benchmarks. That is why even mild escalation headlines can push crude oil price sharply higher.
Bullish Positioning In Brent Crude Shows Aggressive Oil Price Expectations
The Kobeissi Letter noted a major development in derivatives positioning. Brent crude call option volumes hit a record 5.8 million contracts in January. February has already printed 3.5 million contracts with trading still left in the month. Those figures rank among the highest readings ever recorded.
The previous peak came in October 2024 during elevated tensions between Iran and Israel. The present surge links to fears of a possible US strike on Iran, after reports that the US has amassed one of its largest regional forces since 2003.
Bullish oil bets are surging:
— The Kobeissi Letter (@KobeissiLetter) February 23, 2026
Brent crude call option volumes surged to a record 5.8 million contracts in January.
This is followed by 3.5 million contracts so far in February, one of the highest readings on record, with one week of trading still remaining.
By comparison, the… pic.twitter.com/rbRfC5A7WO
Crude oil price has climbed about 15% year to date. That marks the strongest start to a year since 2022. Heavy call option activity signals that market participants are positioning for further upside in oil price. Such positioning does not guarantee a rally. It does reveal conviction that supply risk could intensify.
Technical Structure Suggests Crude Oil May Attempt Another Break Higher
Crude oil price holding above $70 matters technically. That level has acted as both support and resistance over multiple cycles. A firm base near this region often precedes directional expansion.
Indicators across shorter timeframes have cooled from overbought territory. That reset creates room for renewed upside pressure if buyers step back in. Strong closes earlier last week established bullish momentum. The current retracement has not erased that structure.
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Crude oil markets remain sensitive to headlines. Oil price strength depends on whether geopolitical tensions escalate or stabilize. Supply disruption fears remain the central catalyst for this move.
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