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2026.01.2913:56:54UTC+00Oil Rises for 3rd Session

WTI crude oil futures surged over 3.5%, reaching approximately $65.5 per barrel. This marks the highest intraday level since September and approaches the strongest close since August. The increase is attributed to heightened geopolitical risk premiums following recent U.S. threats against Iran. President Donald Trump cautioned Tehran to consent to a nuclear deal or face potential military action, asserting that U.S. naval forces in the area are ready to respond if necessary. The possibility of U.S. military action has raised concerns about disruptions in Middle Eastern crude oil flows, which constitute about one-third of global supply. Additionally, any potential Iranian retaliation could jeopardize shipping routes through the Strait of Hormuz, a pivotal channel for oil and LNG shipments. Despite anticipations of an oversupply, oil prices have climbed this year, driven by geopolitical tensions involving Iran and Venezuela and supply disruptions in Kazakhstan. Trump's recent remarks have further accentuated the risks that could push prices higher.

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