Oil prices finished Friday at their highest levels in more than a week as Washington escalated pressure on Iran with new sanctions and stepped-up military signaling, renewing concerns over potential supply disruptions. Brent crude climbed $1.82, or 2.8%, to settle at $65.88 a barrel, while U.S. West Texas Intermediate rose $1.71, or 2.9%, to $61.07. Both benchmarks posted weekly gains of more than 2.5%.
Markets reacted to fresh U.S. sanctions targeting vessels and companies involved in transporting Iranian oil, alongside reports that U.S. naval forces — including an aircraft carrier and guided-missile destroyers — are en route to the Middle East. Iran, OPEC’s fourth-largest producer at roughly 3.2 million barrels per day, remains a key supplier to China, amplifying concerns about any disruption.
Supply risks were compounded by continued outages in Kazakhstan. Output at the Chevron-led Tengiz oilfield has yet to resume following a fire earlier in the week, worsening existing export constraints tied to damage at the Black Sea CPC terminal. JP Morgan warned that Tengiz, which accounts for nearly half of Kazakhstan’s production, could remain offline through the end of the month, cutting national output well below normal levels.
Earlier gains tied to Trump’s rhetoric on Greenland faded midweek after he softened tariff threats toward Europe and ruled out immediate military action, briefly pulling prices lower. Friday’s rally, however, reflected renewed geopolitical tension and persistent concerns about constrained supply.