Crude oil prices held steady near a 16-week high as the dollar weakened against major currencies. Traders closely watched geopolitical tensions involving Iran and comments from former President Donald Trump regarding potential military action.

The market rally reflects growing concerns about supply disruptions from the Middle East. A weaker greenback typically makes dollar-denominated commodities cheaper for foreign buyers, boosting demand. WTI futures have gained roughly 15% since early September.

Investors are monitoring Iran nuclear talks and US foreign policy shifts under new leadership. Energy analysts expect volatility to persist through year-end. OPEC production cuts and recovering global demand continue supporting prices.

Market participants await US inventory data and Federal Reserve signals on monetary policy. Any escalation in Middle East tensions could push oil prices higher heading into winter months.