Oil Prices Rise as Trump’s Iran Comments Fuel Supply Concerns

Oil prices climbed around 2% on Friday and remained on track for strong weekly gains after President Donald Trump adopted a tougher stance toward Iran, increasing fears of prolonged tensions in the Middle East and potential disruptions to global energy supplies.

Markets also monitored developments from Trump’s recent meeting with Chinese President Xi Jinping in Beijing.

By 02:25 ET (06:25 GMT), Brent crude futures rose 1.9% to $107.69 per barrel, while WTI crude futures gained 2.2% to $103.40 per barrel.

Both benchmarks were heading toward weekly gains of approximately 6% to 8%, supported by geopolitical uncertainty.

Trump Signals Tougher Approach Toward Iran

Investor concerns intensified after Trump made hawkish remarks regarding Iran.

In a Truth Social post, Trump stated:

“the military decimation of Iran (to be continued!).”

During a separate interview, Trump added that his patience with Tehran was running out and urged Iran to accept a deal.

The comments increased concerns over further escalation in the region and its impact on global oil markets.

Strait of Hormuz Remains Key Risk for Energy Markets

The Strait of Hormuz, a crucial shipping route handling nearly one-fifth of global oil supplies, continues to be closely watched by investors.

Although Iranian media reported that roughly 30 vessels crossed the waterway this week, overall traffic remains well below normal levels.

Shipping companies and tanker operators are reportedly hesitant to resume regular operations due to ongoing security risks in the region.

Continued disruptions could tighten global energy supplies and place additional pressure on oil prices.

IEA Warns of Potential Oil Supply Shortages

The International Energy Agency warned this week that global oil markets could remain significantly undersupplied through October, even if geopolitical tensions ease in the coming months.

The outlook has strengthened concerns about higher energy prices and their potential impact on inflation worldwide.

Trump-Xi Talks Focus on Energy Security and Trade

Investors also followed the latest discussions between President Donald Trump and Chinese President Xi Jinping.

According to statements from officials, both leaders agreed that the Strait of Hormuz should remain open to support uninterrupted global energy flows.

Reports also suggested Xi expressed interest in increasing purchases of U.S. crude oil as China looks to diversify energy imports away from Middle Eastern supply routes.

US-China Leaders Highlight Progress but No Major Agreements

During the second day of meetings, Chinese officials said both countries agreed to improve communication and stabilize trade relations.

State media reported that Washington and Beijing reached an “important consensus” on expanding cooperation and managing disagreements.

However, despite positive remarks, no major trade agreements or concrete policy announcements emerged following the summit.

Markets remain cautious as investors wait for further developments regarding both U.S.-China relations and tensions in the Middle East.