FX.co ★ Oil Rises to 4-Month High

On Wednesday, WTI crude oil futures climbed to approximately $63 per barrel, marking the highest level in four months. This rise was driven by increased geopolitical risk premiums after the United States renewed its threats against Iran. President Donald Trump cautioned about potential additional attacks and urged Tehran to negotiate, heightening worries about possible disruptions to Iranian oil supplies. This escalation maintained robust oil prices as the year began, with futures increasing over 10% this month, despite predictions of an oversupply. Trump's announcement of a significant U.S. naval presence in the Middle East further amplified perceptions of growing regional tensions. Diplomatic initiatives followed, with Iran and Qatar advocating for dialogue, while Saudi Arabia confirmed its territory would not be used for operations against Tehran. Nonetheless, the lingering uncertainty surrounding the situation continues to underpin prices.