Oil Hits Four-Month Peak Amid Trump's Ultimatum to Iran
Oil prices rose to a new four-month high after US President Donald Trump threatened another attack on Iran, while urging Tehran to renegotiate the nuclear deal. This tough tone immediately raised market concerns about the risk of supply disruptions from Iran, bringing the geopolitical premium back into oil prices.
Trump wrote on Truth Social that he hoped Iran would soon "come to the negotiating table" for a fair deal, but warned that "the next attack will be much worse" than last year. Following the post, West Texas Intermediate (WTI) futures briefly touched around $63.52 per barrel, their highest since late September, extending the strong rally from the previous session.
Oil's rally this month has also solidified. Oil contracts have risen more than 8% this month despite the market's ongoing narrative of global oversupply. In the options market, the cost of bullish bets remains high relative to bearish ones—a sign that market participants are still willing to pay more for protection against a rising price scenario.
The rally was briefly pared after Iran's mission to the UN expressed readiness for dialogue based on mutual respect and shared interests, but asserted it would defend itself and respond "in an unprecedented manner" to any US aggression. Additional support came from a slight strengthening dollar after US Treasury Secretary Scott Bessent reiterated that the US remains committed to a "strong dollar policy" and denied rumors of foreign exchange intervention—a strengthening dollar typically makes dollar-denominated commodities less attractive.
Fundamentally, the structure of the oil market also signals tighter supply, as evidenced by the widening spread of nearby contracts in a backwardation pattern. US government data also supported sentiment after crude oil stocks fell by around 2.3 million barrels last week, although rising refined product stocks tempered the euphoria. On Wednesday, March WTI was around $62.96 per barrel, while March Brent was around $68.08 per barrel. (alg)
Source: Newsmaker.id
