Oil prices moved higher during Asian trading on Friday after U.S. President Donald Trump suggested that American naval forces were being positioned near Iran, fuelling fresh concerns over potential supply disruptions from a key Middle Eastern producer.
While crude had dipped earlier in the week, prices remained on track for a fifth consecutive weekly gain. Traders have increasingly priced in geopolitical risk, alongside expectations of firmer demand, as global tensions heighten the threat of interruptions to oil flows.
Brent crude futures for March delivery climbed 0.9% to $64.62 a barrel, while U.S. West Texas Intermediate futures also rose 0.9% to $59.89 a barrel by 22:48 ET (03:48 GMT).
Trump highlights ‘armada’ deployment
Speaking to reporters aboard Air Force One on Thursday night, Trump said the United States had dispatched a fleet toward Iran and warned Tehran against escalating domestic crackdowns or reviving its nuclear programme.
“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.
Media reports indicated that a U.S. aircraft carrier and several destroyers are expected to reach the Middle East in the coming days, reigniting fears of renewed military confrontation in the region.
Iran is among the largest oil producers within the Organization of the Petroleum Exporting Countries and is also a major supplier to China, the world’s biggest crude importer. Any military action involving the United States would likely disrupt Iranian oil exports.
The country has faced nationwide protests since January against the ruling Nezam, with reports suggesting that thousands were killed during the latest unrest.
Fifth weekly gain in sight
On a weekly basis, oil prices were up between 0.6% and 0.8% after a volatile stretch, as investors also responded to shifting signals from Washington on Greenland.
Additional support came from modestly positive economic data out of China and the International Energy Agency’s decision to lift its oil demand outlook for 2026. Crude has also attracted bargain hunters following a weak showing through much of 2025.
A softer U.S. dollar further underpinned prices, with markets continuing to expect the Federal Reserve to cut interest rates later this year, a dynamic that tends to support dollar-denominated commodities.
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