UAE was forced to close some beaches after the country detected an oil spill from a tanker which was attacked in the Persian Gulf. Iran has increased attacks on tankers in recent weeks. In this light, the U.S. may choose to restart the military operation against Iran to protect vessels going through the Strait of Hormuz.

Iran has previously warned that the country’s response to a potential attack would not be limited to defense. Iranian officials have speculated that the country could initate a land operation against any country helping the U.S. I’d note that the U.S. has already ordered some diplomats and their families to leave Saudi Arabia, a sign of escalating tensions in the region.

WTI oil climbed above the resistance at $100.50 – $101.00 and is trying to settle above the $103.00 level. In case this attempt is successful, WTI oil will head towards the next resistance, which is located in the $106.00 – $106.50 range. A move above the $106.50 level will push WTI oil towards the $110.00 level.