Oil prices surged as President Trump's 'armada' rhetoric reignited supply concerns. The U.S. president's comments about an impending military deployment to Iran reversed a previous decline, setting the stage for a weekly price increase. At the time of writing, Brent crude was trading at $64.50 per barrel, while West Texas Intermediate hovered at $59.78 per barrel, having shed 2% on Thursday due to the escalating U.S.-Europe tensions over Greenland. The 'armada' news, sourced from a U.S. official, sparked fears of potential supply disruptions from Iran, a significant OPEC oil producer. This follows Trump's earlier announcement of 25% tariffs on countries trading with Iran, raising questions about oil security. However, Trump later downplayed military involvement, citing subsiding violence against protesters. The geopolitical tension's impact on oil prices is evident, with China, the largest buyer of Iranian oil, poised to suffer most from any supply disruptions, adding to the burden of higher Venezuelan crude prices under U.S. export management.
