Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Rallies 3% As Iran Targets Kuwait's Water And Power Plants

• WTI oil rose above $82 and Brent climbed above $87, with both testing technical resistance levels and the 50-day moving averages ($84.42 for WTI, $88.40 for Brent)
• The conflict expanded beyond military targets to critical infrastructure, including Iran's bridges and Kuwait's water plants, raising fears of attacks on regional oil assets
• Traffic through the Strait of Hormuz has significantly declined as President Trump threatened to intensify strikes if Iran continues vessel attacks and maintains its position on the strategic waterway

Market Summary: Oil Rallies on Middle East Tensions

Key Price Movements:

Oil markets surged approximately 3% on July 17, 2026, amid escalating Middle East conflict. WTI crude rallied above $82.00, while Brent climbed above $87.00, testing the $88.00 level. Natural gas gained modest ground, attempting to settle above $2.90.

Geopolitical Catalyst:

The rally was triggered by intensifying hostilities between the U.S. and Iran. Iran reportedly targeted non-military infrastructure including Kuwait's water desalination plants, while the U.S. struck Iranian bridges. President Trump threatened to escalate strikes if Iran continues interfering with vessels navigating alternative routes to the Strait of Hormuz, where traffic has significantly declined.

Market Implications:

Traders fear potential escalation into all-out war, with concerns that the U.S. may target Iran's critical infrastructure, prompting Iranian retaliation against regional oil and gas assets. This has driven traders to rush into oil futures ahead of the weekend.

Technical Outlook:

• WTI Oil: Breaking above $80.00-$80.50 resistance, targeting 50-day MA at $84.42. Downside support at $74.50-$75.00.
• Brent Oil: Settled above $86.00-$86.50 resistance, testing 50-day MA at $88.40. Next resistance at $90.50-$91.00.
• Natural Gas: Attempting to hold above $2.90, with resistance at $3.00-$3.05 and support at $2.75-$2.80. High demand expected due to weather forecasts.

RSI indicators remain in moderate territory across all commodities, suggesting room for additional upside momentum if geopolitical tensions continue.