Oil prices climbed during Asian trading on Friday after U.S. President Donald Trump raised the prospect of military action involving Iran, a key global crude producer, stoking fresh fears of supply disruptions across the Middle East.
Although prices had slipped earlier in the week, crude remained on course for a fifth consecutive weekly gain. Markets have been factoring in stronger demand expectations alongside a rising geopolitical risk premium, as tensions in multiple regions heighten concerns over potential interruptions to energy supplies.
By 22:48 ET (03:48 GMT), Brent crude futures for March delivery were up 0.9% at $64.62 a barrel, while West Texas Intermediate futures also advanced 0.9% to $59.89 a barrel.
Trump warns of ‘armada’ near Iran
Speaking to reporters aboard Air Force One on Thursday evening, Trump said the United States had deployed naval forces toward Iran and cautioned Tehran against escalating internal repression or resuming nuclear activities.
“We have an armada… heading in that direction, and maybe we won’t have to use it,” Trump told reporters. “I’d rather not see anything happen, but we’re watching them very closely,” Trump said.
According to reports, a U.S. aircraft carrier and several destroyers are expected to arrive in the Middle East in the coming days, reviving concerns about renewed military engagement in the region.
Iran ranks among the largest oil producers within the Organization of Petroleum Exporting Countries and is also a major supplier to China, the world’s largest crude importer. Any U.S. military involvement would likely pose a significant risk to Iranian oil exports.
The country has experienced widespread protests since January against the ruling Nezam, with reports suggesting that thousands of people were killed during the recent unrest.
Crude set for fifth weekly rise
On a weekly basis, oil prices were up between 0.6% and 0.8%, following sharp swings as investors also reacted to shifts in Washington’s position on Greenland.
Support for prices has also come from mildly encouraging economic data out of China and the International Energy Agency’s upward revision to its 2026 oil demand forecast. Crude has additionally benefited from bargain buying after a weak performance throughout much of 2025.
A softer U.S. dollar has further underpinned oil markets, as investors remain confident that the Federal Reserve will move to cut interest rates later this year, boosting demand prospects for dollar-denominated commodities.