Oil jumped on Iran supply concerns, though trade war pessimism lingered

Oil prices rose on Friday as market attention shifted back to supply risks, after Washington signalled the possibility of halting Iran’s crude exports. Its statements temporarily shifted focus away from trade tensions, which had dominated market conversations earlier in the week. 

Brent crude settled $1.43 higher at $64.76 a barrel.

WTI gained $1.43, closing at $61.50 a barrel.

The US indicated it could enforce tighter restrictions on Iran’s oil exports as part of efforts to pressure Tehran over its nuclear program. Traders noted that such measures could disrupt global supply dynamics, given Iran’s production of around 3.99 million barrels per day—roughly 4% of global output as of 2023.

Still, sentiment remained cautious. Lingering concerns over the US-China trade dispute continued to weigh on the broader demand outlook, fuelling uncertainty about the pace of global economic growth and its implications for fuel consumption.

Written by: Derek Yong