Overview
- Brent hovered around $70–$72 a barrel and WTI around the mid-$60s, with January set to deliver the biggest monthly gain for Brent since early 2022, according to Reuters.
- President Donald Trump warned Iran to accept a nuclear deal or face military action and highlighted a U.S. naval deployment led by the USS Abraham Lincoln, while Tehran vowed immediate retaliation.
- Analysts said prices reflect a geopolitical premium tied to potential losses of Iranian exports or interference in the Strait of Hormuz, which carries roughly 20 million barrels per day.
- Banks and market watchers expect any U.S. action to be targeted and see limited odds of sustained supply outages, with several forecasters cautioning that an enduring move to $100 per barrel is unlikely.
- Gold and silver jumped to record or multi-month highs before easing, and traders also cited a weaker dollar plus weather and supply disruptions in Kazakhstan, Russia, Venezuela, and the U.S. as supporting factors.