FX.co ★ Oil Rises on US Threats to Iran

WTI crude oil futures climbed toward $64 per barrel on Thursday, marking their third consecutive gain and reaching highs not observed since late September. This increase was fueled by heightened concerns over supply disruptions following U.S. warnings of possible military action should Iran fail to agree to a nuclear deal. President Donald Trump remarked that a substantial U.S. naval force in the region is prepared to respond "with speed and violence, if necessary." These comments have escalated worries about potential conflicts that could disrupt crude oil shipments from the Middle East, a region accounting for approximately one-third of the world's supply. Additionally, Iran could potentially retaliate by targeting the Strait of Hormuz, a critical chokepoint for oil and LNG transport. While Iran has expressed openness to dialogue, it has also cautioned of an unprecedented retaliation if provoked, while simultaneously ramping up diplomatic efforts with neighboring countries to prevent further conflict. In parallel, the U.S. dollar has depreciated to its lowest point in nearly four years, enhancing the appeal of dollar-denominated commodities for buyers.