"Middle East Tensions Drive Oil Prices Higher in January"

Oil prices are set for their first monthly gain since September amid escalating tensions between the U.S. and Iran in the Middle East. Despite a recent dip due to China's contracting factory activity, prices have risen on stronger U.S. growth, supply disruptions, and Beijing's economic stimulus efforts. President Biden has indicated a response to the death of U.S. troops, holding Iran responsible and prompting Iran to warn of decisive action in case of U.S. aggression. The potential for a wider conflict raises concerns about crude supplies, with analysts cautioning that a direct confrontation could lead to higher oil prices.