International crude oil prices remained elevated after a volatile trading week, holding onto gains sparked by renewed geopolitical tensions involving Iran and fresh concerns over potential supply disruptions.
As of 8:00am WAT, U.S. West Texas Intermediate (WTI) crude was trading at $61.07 per barrel, up $1.71 or 2.88%, while Brent crude stood at $65.88 per barrel, rising $1.82 or 2.84%. Murban crude also firmed to $65.94 per barrel, gaining $1.21 or 1.87%, according to market data.
The price strength follows a sharp rebound earlier in the week after comments by U.S. President Donald Trump raised fears of possible military escalation involving Iran, a key oil producer within OPEC.
Iran Rhetoric Reverses Midweek Price Slide
Oil benchmarks had dropped by about 2% on Thursday after President Trump softened his stance on trade tensions with Europe and ruled out immediate military action linked to Greenland. That decline quickly reversed after Trump disclosed that a U.S. “armada” was heading toward Iran, reigniting concerns over supply security in the Middle East.
According to U.S. officials cited by Reuters, the deployment includes an aircraft carrier and several guided-missile destroyers expected to arrive in the region within days. The development revived fears that tensions with Tehran could escalate into disruptions affecting crude exports.
Iran produces about 3.2 million barrels per day, making it OPEC’s fourth-largest oil producer, behind Saudi Arabia, Iraq, and the United Arab Emirates. It also remains a major supplier to China, the world’s second-largest oil consumer.
Earlier this month, Trump announced a 25% tariff on any country doing business with Iran, aimed at pressuring Tehran amid ongoing protests. The move raised fresh questions about the stability of Iranian oil exports and their impact on global supply balances.
Geopolitical Pressures Add to Market Uncertainty
The oil market has remained highly sensitive to geopolitical signals, with prices swinging sharply in response to shifting rhetoric from Washington. When Trump later downplayed the likelihood of direct military intervention, citing a reduction in violence inside Iran, oil prices immediately retreated—underscoring the market’s vulnerability to policy headlines.
Beyond Iran, broader geopolitical risks continue to cloud the outlook. Mexico is weighing whether to halt or scale back oil shipments to Cuba, amid concerns that continued exports could trigger retaliation from the United States. The issue has gained urgency following the halt of Venezuelan oil supplies to Cuba after U.S. intervention in Venezuela.
While Mexican President Claudia Sheinbaum has publicly maintained that shipments to Cuba will continue under humanitarian agreements, officials privately worry that defying Washington could complicate trade negotiations under the USMCA and strain broader diplomatic relations.
For Cuba, the stakes remain high. The island is grappling with a deepening energy crisis marked by fuel shortages, chronic blackouts, and infrastructure failures, after years of underinvestment and reliance on imported crude.
For now, oil prices are holding onto weekly gains, supported by lingering geopolitical risks, even as traders remain alert to sudden reversals driven by policy shifts and diplomatic developments.