Oil prices have experienced a significant surge, with increases of more than 4%, reaching two-month highs. This upward trend is primarily driven by escalating tensions in the Middle East, particularly the situation related to the US embassy evacuation in Iraq due to security threats. Additionally, optimism surrounding US-China trade negotiations has bolstered market sentiment, contributing to this rally. Crude prices have jumped as traders respond to declining US inventories and positive economic indicators, including a strong jobs report. As the markets continue to monitor the situation closely, oil prices remain near seven-week highs, reflecting a complex interplay of geopolitical concerns and trade developments.