India, Jan. 29 -- Oil prices climbed to their highest level since late September on Wednesday, driven by escalating geopolitical tensions with Iran and a weakening U.S. dollar. A surprise drop in U.S. crude inventories provided further support, putting both major benchmarks on track for their largest monthly percentage gains since July 2023.

Prices are being lifted by a combination of geopolitical risk and market fundamentals. The main trigger is rising Middle East tension after President Trump warned Iran to negotiate a nuclear deal or risk a harsher attack than in June, as a U.S. aircraft carrier is now positioned in the region. A U.S. aircraft carrier is now in the area. A significantly weaker U.S. dollar, which makes oil cheaper for ...