Deutsche Bank's report by Henry Allen, Macro Strategist and Jim Reid, Global Head of Macro and Thematic Research, highlights a significant increase in Brent Crude Oil prices, which rose by 16.2% in January 2026, closing at $70.69/bbl. This surge was driven by escalating geopolitical risks, particularly concerning Iran and Venezuela. The report notes that this was the largest monthly gain for Brent since January 2022, reflecting heightened market volatility and investor sentiment.

Geopolitical risks drive oil prices higher

"However, events in Iran led to a much clearer oil price reaction, with Brent crude ending the month above $70/bbl again. That came as speculation mounted about some kind of US strike on Iran, and Trump himself posted on Jan 13 that he had cancelled all meetings with Iranian officials, whilst calling on protestors to take over the institutions."

"By the end of January, Brent crude was up +16.2% to $70.69/bbl, having seen its biggest monthly jumps since January 2022."

"This surge in oil prices also occurred alongside a fresh move lower for the USDollar, with the dollar index down -1.4% in January, which included the biggest 4-day slides since the Liberation Day turmoil last April."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)