Oil Prices Rise After Trump Signals Naval Move Toward Iran

Global oil prices climbed on Friday after former U.S. President Donald Trump renewed threats against Iran, raising fears of potential military escalation in the Middle East that could disrupt energy supplies. 

The gains were amplified by continued production outages at a major oil field in Kazakhstan, tightening global supply conditions.

Brent crude futures for March delivery rose $1.12, or 1.8%, to settle at $65.18 a barrel. U.S. West Texas Intermediate (WTI) crude gained $1.06, or 1.8% to $60.54 a barrel. Both benchmarks are on track to post weekly gains of around 1.6%, recovering part of the losses seen on Thursday when prices fell nearly 2%.

Latest Oil Prices:

WTI Crude • 60.98 +1.62 +2.73%

Brent Crude • 65.78 +1.72 +2.68%

Murban Crude • 65.91 +1.18 +1.82%

Louisiana Light • 61.73 +0.85 +1.40%

Bonny Light • 78.62 -2.30 -2.84%

Opec Basket • 63.21 +0.27 +0.43%

Mars US • 69.79 -0.88 -1.25%

Gasoline • 1.851 +0.034 +1.88%

Natural Gas • 5.196 +0.151 +2.99%

Markets reacted sharply after Trump told reporters aboard Air Force One that the United States had a “naval fleet” moving toward Iran, though he said he hoped it would not need to be used. He also reiterated warnings to Tehran over its handling of domestic protests and any potential resumption of its nuclear program.

A U.S. official later confirmed that the deployment includes an aircraft carrier and missile-equipped destroyers expected to arrive in the Middle East in the coming days. While no immediate military action has been announced, traders remain wary of the risk of confrontation in a region that accounts for a significant share of global oil supply.

Iran, the fourth-largest producer within the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia, Iraq, and the United Arab Emirates, plays a crucial role in global energy markets. According to OPEC data, Iran produces approximately 3.2 million barrels of oil per day and is a key supplier to China, the world’s second-largest oil consumer.

Concerns over supply were further compounded by ongoing disruptions in Kazakhstan. Chevron said production at the Tengiz oil field, one of the largest oil fields in the world, has yet to resume following a fire that broke out earlier this week. Tengizchevroil, the Chevron-led consortium operating the field, halted output on Monday as a precaution.

The outage adds to existing challenges facing Kazakhstan’s oil sector, which has already been grappling with bottlenecks at its main export terminal on the Black Sea. That infrastructure has reportedly suffered damage from Ukrainian drone attacks, further constraining exports.

JPMorgan said on Friday that the Tengiz field, which accounts for nearly half of Kazakhstan’s total oil production, could remain offline for the rest of the month. The bank estimates that Kazakhstan’s average crude output in January may fall to between 1 million and 1.1 million barrels per day, well below the usual level of around 1.8 million bpd.