Oil prices held steady near a four-month high as traders monitored renewed threats from US President Donald Trump against Iran, while a weaker dollar boosted the appeal of commodities priced in the US currency.
Brent crude futures for March settlement were little changed at $67.61 a barrel at 03:40 pm Singapore time, while West Texas Intermediate crude futures for March delivery were steady at $62.51 a barrel.
On Tuesday, Trump reiterated that a large fleet was heading to the Middle East, adding that he hoped the United States would not have to use it.
Iranian threats and a weak dollar are supporting prices
Trump’s focus on Iran came in the wake of the Iranian regime’s crackdown on protests against Supreme Leader Ali Khamenei’s government, adding a risk premium to oil prices.
Futures contracts have started the year on a strong basis, despite expectations of a supply surplus as OPEC+ and non-alliance producers increase output.
In contrast, an index measuring the dollar's performance fell to its lowest level in nearly four years on Tuesday, after Trump said he was not worried about the currency's weakness.
This decline has been fueled by his unpredictable approach to policymaking, including his threats to take over Greenland and the pressure he has exerted on the Federal Reserve.
