Oil prices advanced during Asian trading on Friday after U.S. President Donald Trump warned of possible military action involving Iran, stoking fears of fresh supply disruptions across the Middle East.
Despite posting some losses earlier in the week, crude oil was still on track for a fifth consecutive weekly gain. Expectations of improving global demand, combined with a rising geopolitical risk premium, continued to support prices as investors priced in the threat of supply shocks from escalating global tensions.
March Brent crude futures climbed 0.9% to $64.62 per barrel, while West Texas Intermediate (WTI) crude also rose 0.9% to $59.89 per barrel by 22:48 ET (03:48 GMT).
Trump warns of ‘armada’ moving toward Iran
Speaking to reporters aboard Air Force One on Thursday evening, Trump said the United States had deployed a naval fleet toward Iran and warned Tehran against killing protesters or restarting its nuclear program.
“We have an armada heading in that direction, and maybe we won’t have to use it,” Trump said, adding that the situation was being closely monitored.
According to reports, a U.S. aircraft carrier along with several destroyers are expected to arrive in the Middle East in the coming days, raising concerns about renewed military escalation in the region.
Iran is among the largest oil producers within the Organization of Petroleum Exporting Countries and remains a key supplier to top crude importer China. Any direct U.S. military involvement could significantly disrupt oil exports from the country.
Iran experienced nationwide protests in January against the ruling Nezam, with reports suggesting thousands of casualties during the unrest, further heightening geopolitical uncertainty.
Oil set for fifth straight weekly gain
Oil prices were up between 0.6% and 0.8% for the week, following volatile trading as markets also reacted to shifting U.S. policy signals regarding Greenland.
Support also came from modestly positive economic data out of China and a decision by the International Energy Agency to raise its global oil demand forecast for 2026. Crude markets additionally benefited from bargain buying after a weak performance in 2025.
A softer U.S. dollar further boosted oil prices, as investors increasingly expect the Federal Reserve to begin cutting interest rates later this year.
