Oil prices rise amid global geopolitical developments

Oil drilling rigs

Oil prices rose at the close of trading today, Jan. 12, as market participants assessed global geopolitical developments along with the outlook for US monetary policy.

Brent crude futures for March delivery rose 0.84%, or 53 cents, to $63.87 a barrel. WTI crude oil futures for February delivery gained 0.64%, or 38 cents, to $59.50 a barrel.

This comes against the backdrop of the turbulent internal political scene in Iran, and the threat of intervention by US President Donald Trump.

Tensions in Iran limited the impact of expectations that Venezuelan oil exports will resume, following Trump's announcement last week that the Caracas government will deliver up to 50 million barrels of crude subject to Western sanctions to the US.

On another front, the Trump administration intensified its attack on the Federal Reserve by summoning the bank's Chairman Jerome Powell for a criminal investigation regarding the headquarters renovation budget. Changes in monetary policy affect economic growth, and consequently, oil demand.