Oil Gains, Dollar Weakens—Markets Wary of Iran
Oil prices remain near 16-week highs, following a sharp surge in the previous session. Market participants are now weighing two main triggers: a weakening US dollar and renewed geopolitical tensions.
WTI crude oil is hovering near its latest high after a strong rally that took prices to their highest level since early October. This rise has the market holding its breath, as many traders begin locking in positions while awaiting the next direction.
The weakening dollar is also providing additional fuel. When the dollar falls, dollar-denominated commodities like oil become cheaper for global buyers—and that typically boosts demand.
On the geopolitical front, market focus is on Iran. US President Donald Trump reiterated that a “major armada” is moving to the Middle East, adding that he hopes force will not need to be used. This signal is enough to keep risk-on sentiment from becoming too aggressive.
In conclusion, oil is supported by a combination of a weak dollar and a geopolitical risk premium. As long as the market still sees the potential for escalation, there is room for upside—but volatility is also poised to increase at any time. (az)
Source: Newsmaker.id
