FX.co ★ Oil Heads for Strong Weekly Gain

WTI crude oil futures rose above $66 per barrel on Friday, holding near a six-month high and on track for a weekly gain of more than 5%, after President Donald Trump set a deadline for Iran to reach a nuclear agreement. Trump indicated that negotiations would likely have no more than 10 to 15 days to make progress. At the same time, the US has launched its largest military buildup in the Middle East since the 2003 Iraq invasion, fueling expectations of a broader and more prolonged operation than last June’s overnight strike on Iran’s nuclear facilities. The escalation has intensified fears of supply disruptions, as investors worry that a US-Iran conflict could lead Iran to restrict traffic through the Strait of Hormuz, a vital chokepoint for crude exports from the region. Further supporting prices, government data showed that US crude inventories fell by 9 million barrels last week, the sharpest drawdown since early September.