Oil prices gain 1.5% on increasing concerns of Iran attack
Prices are rising as US President Donald Trump has increased pressure on Iran to end its nuclear programme with threats of military strikes and as a US naval group has arrived in the region.
Published: 02:01 PM,Jan 29,2026 | EDITED : 06:01 PM,Jan 29,2026
SINGAPORE:Oil prices rose 1.5% on Thursday, extending gains for a third day, on increasing concerns the US may carry out a military attack on key Middle Eastern producer Iran that could disrupt supply from the region.
Brent crude futures rose 94 cents, or 1.4%, to $69.34 a barrel by 0730 GMT. US West Texas Intermediate crude climbed 92 cents, or 1.5%, to $64.13 a barrel.
Both contracts have climbed about 5% since Monday and are at their highest since September 29.
Prices are rising as US President Donald Trump has increased pressure on Iran to end its nuclear programme with threats of military strikes and as a US naval group has arrived in the region. Iran is the fourth-largest producer among the Organization of the Petroleum Exporting Countries, with output of 3.2 million barrels per day.
Trump is considering options to attack Iranian security forces and leaders to inspire protests to potentially topple the current regime, Reuters reported on Thursday, citing US sources familiar with the discussions.
“The main driver of oil prices remains geopolitical risk premium surrounding Iran and the Middle East, though unplanned outages in Kazakhstan and the US (Winter Storm Fern) have had temporary impact as well,” DBS Bank’s energy sector team lead Suvro Sarkar said.
The huge Tengiz oilfield in Kazakhstan is being restarted in stages after electrical fires cut output last week.
In the US, crude and gas producers were bringing wells back online following disruptions from severe cold caused by Winter Storm Fern.
A surprise draw in US crude inventories also supported prices. US crude inventories fell by 2.3 million barrels to 423.8 million barrels in the week ended January 23, the Energy Information Administration said, compared with expectations for a 1.8 million-barrel rise.
Some analysts are forecasting higher prices due to Iran-related risks. Citi said the geopolitical premium could add $3 to $4 a barrel, with Brent potentially reaching $72 over the next three months.— Reuters