On Tuesday (March 31st) in Asian trading, US crude oil traded around $106.08 per barrel. Oil prices rose nearly 4% on Monday after the Houthi rebels in Yemen launched their first attack on Israel, further escalating the conflict with Iran and exacerbating market concerns about Red Sea shipping and oil transport routes around the Arabian Peninsula.

US President Trump issued a strong warning to Iran, stating that if an agreement is not reached by April 6th and navigation in the Strait of Hormuz is not restored, the US may strike Iranian energy and infrastructure. This statement significantly increased market concerns about further deterioration of the situation. Meanwhile, the White House revealed that US-Iran negotiations are still progressing, but significant differences exist between the two sides' public positions and private communications, leaving the market lacking confidence in reaching an agreement in the short term.

From a daily chart perspective, US crude oil is still in an overall upward trend, but momentum weakened after approaching $106, showing a short-term high-level consolidation pattern. Key resistance levels to watch are the $108 area (a previous structural level) and selling pressure near the psychological level, while important support lies at the $100 psychological level. A break below this level could open up further downside potential.

From a short-term (1-hour) perspective, US crude oil prices have shown clear signs of being overbought, with momentum indicators gradually declining, suggesting a short-term technical correction is needed. If a breakout above the previous high fails to materialize, oil prices may enter a wide trading range with significantly increased volatility. In summary, today's trading strategy for crude oil is recommended to focus on buying on dips, with selling on rallies as a secondary approach. Short-term resistance levels to watch are $110.0-$115.0, and short-term support levels are $100.0-$94.0.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.