Oil prices steady near four-month high on Iran risks and weak dollar

Oil prices held near a 16-week high post the dollar's slump, while traders also monitored the US President's threats against Iran.

West Texas Intermediate was close to $63 a barrel after rising 2.9% in the previous session to its highest level since early October last year.

Meanwhile, a gauge of the dollar tumbled to the lowest in nearly four years on Tuesday after US President Donald Trump said he was not concerned about the weakening of the greenback.

A weaker dollar makes commodities priced in the currency such as oil and gold more attractive to many buyers. The drop has been fanned by Trump’s unpredictable policymaking, including threats to take over Greenland.

The president reiterated on Tuesday that a “big armada” was headed to the Middle East, adding that hopefully the US won’t have to use it. Trump recently renewed threats against Tehran’s leadership following a crackdown on people protesting against the government.

With inputs from Bloomberg

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