Oil Hits 4-Month High as Iran Tensions Drive Geopolitical Risk Premium; Brent Tops $70

Crude oil surged to a four-month high on January 29, 2026, as markets priced in escalating U.S.-Iran tensions. Brent crude (BZ=F) briefly crossed $70/barrel (+4.3%), while WTI (CL=F) rose 4.7% above $65, extending a 15% monthly rally fueled by cold U.S. weather and rising Middle East risk. Rystad Energy’s Jorge Léon stated markets now view direct U.S. military action against Iran as a near-term threat. President Trump warned of “speed and violence” if Tehran refuses nuclear talks, following naval deployments and prior strikes on Fordow. The Strait of Hormuz, handling 20M bpd, remains a critical flashpoint — though analysts doubt Iran could fully shut it. U.S. inventories also unexpectedly fell 2.3M barrels last week, defying forecasts of a 900K-barrel build.