Crude oil settles at $78.14 after a 9.42% jump, its biggest one-day gain since April 29, while gold fell sharply in the same session.
The oil move marked the largest daily rise since April 29, when crude gained 8.92%. Early trading later showed some easing, with prices near $77.51. Even so, crude still held a gain of about $6.03, or 8.4%, from Friday’s close.
The rally followed rising geopolitical tension. President Trump said ships leaving the Strait of Hormuz would face a 20% transit charge. He said the fee would repay the U.S. Navy for escorting commercial vessels through the shipping lane. Meanwhile, he also announced a blockade of Iranian vessels, and reports of strikes near a Saudi Arabian airport added to supply concerns.
Crude Oil Settles at $78.14 Near Resistance
The surge pushed crude above its 200-day moving average at $74.21. During the session, prices traded between $72.61 and $78.45. Notably, the high stopped just $0.03 short of the 38.2% retracement level at $78.48 from the drop between the June high and the July low.
The rally also reached a falling trend line drawn from the mid-May, June 8, and June 11 highs. That created a key resistance zone. If buyers clear the $78.45 to $78.48 area, the next target stands at the June 17 high of $79.18. After that, focus would turn to $82.00, where the 50% retracement of the decline from the June 3 high sits.
However, a pullback below the $76.00 to $77.10 swing area would suggest the rally is fading. As a result, that move could open the way for a deeper retracement.
Gold Drops Below $4,000 Intraday
Gold also came under strong pressure. The metal fell $118, or 2.86%, to $4,002.25. Earlier in the day, it slipped under $4,000 for the first time since early July and touched a session low of $3,986.62 before trimming some losses.
Technically, gold broke below both the June 11 low and the July 8 low near $4,021.52. Therefore, that level now acts as a key risk point for buyers. As long as gold stays below $4,021.52, the near-term bias remains to the downside.
The next downside levels come in near $3,962 and then the June 30 cycle low at $3,942.43. Buyers need to retake $4,021.52 to reduce the current selling pressure.
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