Trump's Threats to Iran Bring Oil Close to Four-Month High

SadaNews - Oil prices stabilized near their highest level in four months, as traders monitored the renewed threats from U.S. President Donald Trump against Iran, while the weakness of the dollar enhanced the allure of commodities priced in the U.S. currency.

Brent crude traded close to $68 a barrel, after surging 3% in the previous session, marking its highest level since late September, while West Texas Intermediate crude was traded above $62.

Trump reiterated on Tuesday that a "large fleet" is heading to the Middle East, adding that he hopes the United States will not have to use it.

Iran's Threats and Weak Dollar Support Prices

Trump's focus on Iran came after the Iranian regime's crackdown on protests against Supreme Leader Ali Khamenei's government, adding a degree of risk premium to oil prices.

Futures contracts began the year on a strong footing, despite expectations of a supply surplus due to increased production from OPEC+ and producers outside the alliance.

Conversely, an index measuring the dollar's performance fell to its lowest level in nearly four years on Tuesday, after Trump said he was not concerned about the currency's weakness.

This decline was fed by his unexpected approach to policymaking, including his threats to seize Greenland and the pressures he exerts on the Federal Reserve.