Oil Rises on Iran Military Threats, Cold Weather Pushes Heating Demand

Oil prices climbed as traders weighed the potential for U.S. military action against Iran, which could disrupt supplies from one of OPEC’s top producers. West Texas Intermediate crude traded around $61, poised for a fifth weekly gain after President Donald Trump revived threats to target Iran's leadership, citing a Navy "armada" heading to the Middle East. Iran produces approximately 3.3 million barrels per day, and its proximity to shipping lanes heightens concerns over supply risks. Meanwhile, geopolitical tensions escalated as the U.S. pressured Iraq to disarm Iran-backed militias, while Russia showed no signs of ending its war in Ukraine, dampening hopes for reduced supply disruptions. Adding to bullish momentum, cold weather in the U.S. Northeast pushed up demand for heating oil, further supporting prices. The dollar weakened to its lowest level this year, making commodities cheaper for buyers. However, global stockpiles are projected to swell by 3.7 million barrels daily, keeping futures under pressure amid fears of a market glut. Despite geopolitical risks, analysts remain cautious about sustained price gains.