Oil prices increased after US President Donald Trump stepped up pressure on Iran by announcing new sanctions on ships carrying Iranian oil and confirming that US naval forces are moving toward the Middle East.
Trump’s comments renewed strong warnings to Iran, including against harming protesters or restarting its nuclear program. These developments raised fears of possible oil supply disruptions in the region, already facing challenges due to production issues elsewhere.
Brent crude prices rose by $1.86, or nearly 3%, reaching $65.92 per barrel, while US West Texas Intermediate crude increased by $1.77, or about 3%, to $61.13. Both oil benchmarks were on track to record weekly gains of around 2.5%.
A US official said that several warships, including an aircraft carrier and missile-equipped destroyers, are expected to arrive in the Middle East in the coming days. The US had also carried out strikes on Iran in June last year.
Meanwhile, the US Treasury announced sanctions on nine vessels and eight companies involved in transporting Iranian oil and petroleum products. Iran currently produces about 3.2 million barrels of oil per day, making it OPEC’s fourth-largest producer after Saudi Arabia, Iraq, and the UAE. Iran is also a key oil supplier to China, the world’s second-largest oil consumer.
Oil markets were further affected by supply concerns in Kazakhstan. Chevron said production at the Tengiz oilfield, one of the world’s largest, has not yet restarted after it was shut down earlier this week due to a fire. The situation has worsened existing problems for Kazakhstan’s oil exports, especially after damage to key infrastructure on the Black Sea caused by Ukrainian drone attacks.
JP Morgan said the Tengiz oilfield, which produces nearly half of Kazakhstan’s oil, may remain closed for the rest of the month. As a result, Kazakhstan’s oil output in January could fall to around 1 to 1.1 million barrels per day, well below its normal level of about 1.8 million barrels.
Earlier in the week, oil prices had risen due to Trump’s comments related to Greenland but dropped by around 2% on Thursday after he eased tariff threats against Europe and ruled out military action.
In other developments, Colombia announced it would suspend electricity exports to Ecuador and impose a 30% tariff on selected products from its neighbor. Trump also said that Denmark, NATO, and the US had reached an agreement allowing full access to Greenland.
