Oil Spikes on US-Iran Fire: $66 Highs Hit, Buy the Dip at $57–58 for $63 Bounce

Prices for crude oil surged on the escalation of tension between the US and Iran. It is presently trading around $64.52 after reaching a high of $66.48.

As US-Iran relations heightened in late January 2026, crude oil prices spiked dramatically; Brent crude briefly exceeded $70 per barrel—multi-month highs—before retreating to about $68.35–$68.50 as of January 30th, driven by President Trump's aggressive comments including threats of military strikes if Iran rejected a new nuclear accord, deployment of US naval forces such as the Abraham Lincoln carrier group to the Middle East, and admonitions of "speed and violence." Adding a geopolitical risk premium estimated at $3–4 per barrel, this has fed worries about possible disturbances to Iran's about 3.3 million barrels per day production or the crucial Strait of Hormuz chokepoint (handling around 20% of world oil flows), compounded by continuous protests in Iran and fresh US tariffs on nations trading with Tehran. For traders, this encourages cautious long positions in energy with hedges as escalation risks boost oil over more dangerous assets, but fast de-escalation might quickly wipe the premium. Brent's best monthly gain in years (up more than 12–14% in January) also saw WTI rise over $65 at peaks; however, recent indications of possible US-Iran dialogue have caused some retreat.

Price Resistance and Support Levels

The near-term resistance is around $65; any close above this level could push prices higher to $66.50/$68/$70.On the downside, immediate support is at $63 violation below targets  $61.80/$60/$57.97/$55.

 It is good to buy on dips around $57.48-50 with a stop-loss around $56 and a target price of $61.80/$63.