On Wednesday (April 1st) in Asian trading, US crude oil traded around $102.51 per barrel. Oil prices surged and then retreated on Tuesday, with US crude oil briefly touching a new high since March 9th at $106.86 per barrel, due to unconfirmed media reports that the Iranian president stated he was ready to end the war, but needed guarantees. US crude oil's March gain of approximately 52% was the largest since May 2020.

The situation in the Middle East continues to unsettle markets. Tensions between Iran and the West, coupled with regional conflicts, have significantly increased market concerns about the security of shipping through the Strait of Hormuz. This strait handles approximately 20% of global seaborne crude oil transport; disruptions would directly impact the stability of the global supply chain. Although the US has signaled a possible end to military operations within weeks, uncertainty remains high, and the market is still pricing in a risk premium for potential supply disruptions.

On the daily chart, oil prices remain within a high-level consolidation range, repeatedly encountering resistance near $108, indicating heavy selling pressure. The $100 level forms a key support area, reflecting the bulls' defensive stance. Momentum indicators show weakening upward momentum, but a trend reversal signal has not yet formed.

On the 4-hour chart, the short-term trend shows a slightly weak, oscillating structure. Prices are repeatedly testing support and resistance within the range. A decisive break below $100 could trigger technical stop-loss orders and accelerate the decline; conversely, if geopolitical risks escalate again and push prices above $108, new upward potential could be opened. In summary, today's trading strategy for crude oil is recommended to primarily buy on dips, with selling on rallies as a secondary approach. Short-term resistance levels to watch are $108.0-$112.0, and short-term support levels are $100.0-$95.0.

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.