Today, the international crude oil market staged a powerful short squeeze, with overall bullish sentiment erupting. The European trading session marked a turning point, as a concentrated inflow of long funds propelled oil prices straight up.

WTI crude surged nearly 9% on the day, breaking through and firmly holding above the $110/barrel mark, ultimately closing up 8.66% at $110.18/barrel; Brent crude followed suit, closing up 6.83% at $111.02/barrel, with both major crude benchmarks setting strong bullish candlestick patterns.

The market is driven by core factors like geopolitical risk premiums and tight supply-demand dynamics. On one hand, the ongoing tensions in the Middle East are heating up geopolitical games, causing market fears of supply disruptions in the Strait of Hormuz, which has led to a surge in safe-haven buying, directly pushing crude oil valuations higher; on the other hand, OPEC+ continues to enforce production cuts, and global crude inventories are already low, compounded by an unexpected drop in U.S. crude stocks and early pricing in of seasonal travel demand, giving the fundamentals solid backing for a price increase.

The market is showing a strong bullish trend with the European session kicking off, moving upward without significant pullbacks. This indicates a high level of consistency among the bulls and a clear intent to accumulate funds. In the short term, with no signs of easing in geopolitical tensions and no increase in supply, oil prices are likely to rise while facing difficulties in dropping. Once the $110 mark is secured, further upside potential opens up.

Going forward, keep a close eye on the developments in the Middle East, OPEC+ oil-producing countries' policy statements, and the weekly U.S. crude oil inventory data. These factors will directly determine whether this rally can continue, while high oil prices will also continue to impact the energy, chemical, and logistics sectors, driving inflation expectations back up.