Oil prices rebounded Friday after President Trump threatened military action against Iran, sending an “armada” to the region.
Market Reactions
West Texas Intermediate (WTI) for February delivery rose 0.7% to $59.78 per barrel on NYMEX in New York. Brent crude for March delivery increased 0.7% to $64.49 per barrel on ICE. Both contracts had fallen approximately 2% on Thursday before rebounding on Friday.
Trump’s Iran Remarks
The price increase followed President Trump’s comments to journalists aboard Air Force One, stating that the United States had sent an “armada” toward Iran as a precaution, though he hoped not to use it. Trump again warned Tehran against killing protesters or resuming its nuclear program.
Military Deployment
U.S. administration officials informed that military vessels, including an aircraft carrier and missile destroyers, would arrive in the Middle East in the coming days. Iran is the fourth-largest producer in OPEC and a major oil exporter to China, the world’s second-largest oil consumer.
Weekly Price Trend
Brent and WTI oil prices are on track for a weekly gain of approximately 0.6%, following an earlier increase at the start of the week due to Trump’s statements regarding Greenland.
NATO Concerns
The potential military actions could have destabilized NATO, but concerns were alleviated on Wednesday when the president withdrew from any military actions. Trump claimed that Denmark, controlling the Arctic island of Greenland, along with NATO and the United States had reached an agreement allowing for “total access” to Greenland.
