Oil prices climbed sharply last week as global markets reacted to rising tensions between the United States and Iran. Traders and investors worry that conflict in the Middle East could disrupt oil supplies, pushing prices higher.
On January 23, 2026, Brent crude oil, a global benchmark, rose about 2.8 percent to around US $65.88 per barrel, its highest level in more than a week. U.S. West Texas Intermediate (WTI) crude also jumped approximately 2.9 percent to around US $61.07 per barrel. Both prices recorded weekly gains of more than 2.5 percent.
The price increase followed comments from U.S. President Donald Trump, who said an “armada” of American warships, including an aircraft carrier group, was heading to the Middle East, particularly near Iran. This deployment, along with new sanctions on nine ships and eight companies involved in transporting Iranian oil, sparked concern that oil exports could be affected if tensions escalate.
Iran is a major oil producer. According to OPEC data, it is typically ranked as the fourth-largest crude oil producer among members of the Organization of the Petroleum Exporting Countries (OPEC). Its oil plays a big role in global supply, and any threat to those exports can influence prices.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has targeted vessels said to be part of Iran’s “shadow fleet”, older tankers that transport oil and petroleum products to markets despite sanctions. These sanctions aim to limit Iran’s ability to earn revenue from oil sales.
Markets in Kazakhstan are also adding pressure on prices. Production at the Tengiz oil field, one of the world’s largest, has been delayed due to a fire, meaning less oil supply is available from that source too.
Oil prices had dipped earlier in the week when Trump eased other international tensions, including backing away from military threats linked to Greenland. But renewed pressure on Iran shifted attention back to geopolitical risk, which tends to push up energy prices as traders price in possible supply disruptions.
The market’s latest move shows how political and military tensions in key oil producing areas can quickly affect energy costs worldwide, even without any direct conflict. Investors and governments will continue watching the situation closely, as further developments in U.S. – Iran relations or disruptions at major oil fields could influence prices even more in the coming weeks.
