Trump Sends "Armada" to Iran, Oil Immediately Boosts
Oil prices rose in Asian trade on Friday after U.S. President Donald Trump flagged potential military action against major producer Iran, raising concerns over more supply disruptions in the Middle East.
Despite logging some losses in earlier sessions, crude was headed for a fifth straight week of gains, amid expectations of improving demand and as markets priced in a greater risk premium on potential supply disruptions from heightened global geopolitical tensions.
Brent oil futures for March jumped 0.9% to $64.62 a barrel, while West Texas Intermediate crude futures rose 0.9% to $59.89 a barrel by 22:48 ET (03:48 GMT).
Trump says ‘armada’ headed to Iran
Trump, speaking to reporters aboard Air Force One on Thursday evening, said the U.S. had a fleet moving towards Iran, and warned Tehran against killing protestors or restarting its nuclear efforts.
“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.
Reports said an aircraft carrier and several destroyers were set to arrive in the Middle East over the coming days, raising concerns over renewed military action in the region.
Iran is one of the largest oil producers in the Organization of Petroleum Exporting Countries, and is also a major supplier to top oil importer China. Any U.S. military intervention is likely to disrupt oil supplies from the country.
Iran saw countrywide protests in January against the ruling Nezam, with reports indicating that thousands of people were killed in the recent unrest.
Oil heads for fifth week of gains
Oil prices were trading up between 0.6% and 0.8% this week after a whipsaw performance, as markets also digested the U.S.’ shifting stance on Greenland.
But mildly positive economic growth data from China, coupled with the International Energy Agency raising its 2026 demand forecast, provided positive cues to markets. Oil was also open to bargain buying after a dismal performance in 2025.
Weakness in the dollar also aided oil prices, as investors remained convinced that the Federal Reserve will cut interest rates later in the year.
Source: Newsmaker.id
