Oil prices climbed sharply on Friday, hitting their highest levels in over a week after the United States increased pressure on Iran through fresh sanctions and deployed a naval armada to the region.
Brent crude futures rose $1.82, or 2.8%, settling at $65.88 a barrel, while US West Texas Intermediate crude gained $1.71, or 2.9%, to $61.07 per barrel, both marking multi-day highs.
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The surge follows President Donald Trump’s warnings to Tehran against harming protesters or reviving its nuclear program, raising concerns about potential disruptions to oil supply from the Middle East.
Kazakhstan also faced challenges in resuming output from its Tengiz oilfield, compounding global supply worries as the country struggles with export bottlenecks and infrastructure damage from regional conflicts.
The US Treasury imposed sanctions on nine vessels and eight related firms involved in transporting Iranian oil and petroleum products, further pressuring Tehran and tightening the global oil market.
Iran, producing about 3.2 million barrels per day, ranks as OPEC’s fourth-largest oil producer and is a key exporter to major consumers, including China, intensifying concerns over supply stability.
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Warships, including an aircraft carrier and guided-missile destroyers, are en route to the Middle East, signaling Washington’s willingness to escalate its presence amid heightened tensions with Iran.
These moves come after the US conducted strikes on Iranian targets last June, reflecting ongoing friction between the two nations and its impact on global energy markets.
Kazakhstan’s oil output remains constrained after a fire at Tengizchevroil forced a shutdown, with production likely averaging only 1 million to 1.1 million barrels per day this month, down from the usual 1.8 million.
JP Morgan warned that the Tengiz oilfield could remain offline for the rest of January, adding further pressure to global oil supplies already influenced by US-Iran tensions and geopolitical uncertainties.
Earlier in the week, oil prices had reacted to Trump’s Greenland-related moves but fell about 2% on Thursday after he backed off tariffs on Europe and ruled out military action, showing volatility in global markets.
The renewed price surge underscores how geopolitical risks and supply constraints continue to drive energy markets, impacting prices, trade flows, and planning for major oil-consuming countries worldwide.