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Oil prices advanced in Asian trading on Friday after U.S. President Donald Trump warned of potential military action against Iran, reigniting fears of supply disruptions in the Middle East.
Despite some volatility earlier in the week, crude was on track for a fifth consecutive weekly gain, supported by expectations of firmer demand and a growing geopolitical risk premium tied to global tensions.
Brent futures for March rose nearly 1% to around $64.60 a barrel, while U.S. West Texas Intermediate climbed by a similar margin to just under $60.
Trump, speaking to reporters aboard Air Force One, said the United States had a naval force moving toward Iran and cautioned Tehran against escalating unrest or reviving its nuclear ambitions. He noted that Washington was watching developments “very closely,” adding that he hoped force would not be necessary.
Reports indicated that an aircraft carrier and several destroyers are expected to arrive in the region in the coming days, raising concerns over renewed military activity in a key energy-producing area.
Iran is among the largest oil producers within OPEC and a major supplier to China. Any U.S. intervention could significantly disrupt exports, tightening global supply.
Oil markets were already buoyed by mildly positive economic signals from China and a recent upward revision in demand forecasts from the International Energy Agency. Prices have also benefited from a weaker U.S. dollar and expectations that the Federal Reserve will begin cutting interest rates later this year.
Together, these factors have kept crude supported, with traders increasingly pricing in the risk of supply shocks amid intensifying geopolitical uncertainty.
