Oil prices rose nearly 3% after the US sent a naval force to Iran and imposed sanctions on ships carrying Iranian oil
Trump is increasing pressure on Iran. Oil prices closed at their highest level in more than a week on Friday after Trump increased pressure on Iran and announced a naval force was en route.
Brent crude futures rose $1.82, or 2.8%, to $65.88 a barrel, reaching their highest level since January 14. WTI rose $1.71, or 2.9%, to $61.07, also reaching its highest level in more than a week.
Both indicators posted gains of over 2.5% for the week.
Trump reiterated his warnings to Tehran to correct its stance against protesters and not restart its nuclear program. The rising tensions have raised concerns that it could lead to disruptions in oil supply in the Middle East.
The United States launched airstrikes against Iran last June. The U.S. said warships, including an aircraft carrier and guided missile destroyers, will arrive in the Middle East in the coming days.
The U.S. Treasury Department announced Friday that it has also imposed sanctions on nine ships and eight related companies involved in transporting Iranian oil and petroleum products.
According to OPEC figures, Iran is the fourth-largest crude oil producer in OPEC, with approximately 3.2 million barrels per day, after Saudi Arabia, Iraq and the United Arab Emirates. It is also a significant exporter to China, the world's second-largest oil consumer.
Kazakhstan's oil production has not yet resumed. Kazakhstan is struggling to restart production from one of the world's largest oil fields.
Chevron said that oil production at Kazakhstan's Tengiz oil field has not yet resumed after Chevron-led operator Tengizchevroil announced on Monday that it had halted operations due to a fire.
This incident has exacerbated already difficult problems for Kazakhstan's oil industry, whose main export gateway in the Black Sea has been damaged by Ukrainian drones.
It was stated that Tengiz, which accounts for almost half of Kazakhstan's production, may remain closed for the rest of the month, and that Kazakhstan's crude oil production is likely to average between 1 million and 1.1 million barrels/day in January, compared to the normal level of around 1.8 million barrels/day.
Oil prices had risen earlier in the week due to Trump's moves regarding Greenland, but fell by about 2% on Thursday after he backed down on his tariff threats against Europe and rejected military intervention.
Trump said on Thursday that Denmark, NATO and the U.S. had reached an agreement that would give them "full access" to Greenland.
Related Articles
Oil prices are rising as supply concerns increase amid expectations of a prolonged conflict in the Middle East
Oil prices continued to rise following US and Iranian attacks on ships serving their respective purposes
Oil prices closed higher this week following renewed US-Iran hostilities
