Oil Jumps 3% as US Sends Armada to Iran and Enforces Fresh Sanctions

Oil Prices Settled At Their Highest In Over A Week On Friday After U.S. President Donald Trump Ratcheted Up Pressure Against Iran Through More Sanctions On Vessels That Transport Its Oil, And Announced An Armada Was Heading Towards The Middle Eastern Nation.

Brent crude futures rose US$1.82 (S$2.30), or 2.8 per cent, to settle at US$65.88 a barrel, the highest since January 14. US West Texas Intermediate crude gained US$1.71, or 2.9 per cent, at US$61.07, also a more than one-week high, The Caspian Post reports, citing foreign media.

Both benchmarks notched weekly gains of over 2.5 per cent.

Trump's statements renewed warnings to Tehran against killing protesters or restarting its nuclear programme. The escalating pressure has caused concerns of oil supply disruptions in the Middle East. Kazakhstan has been struggling to resume output from one of the world's largest oilfields.

Warships, including an aircraft carrier and guided-missile destroyers, will arrive in the Middle East in the coming days, a US official said. The United States conducted strikes on Iran last June.

The US on Friday also imposed sanctions on nine vessels and eight related firms involved in transporting Iranian oil and petroleum products, the US Treasury said in a statement.

At about 3.2 million barrels per day according to OPEC figures, Iran is OPEC's fourth-biggest crude oil producer behind Saudi Arabia, Iraq and the United Arab Emirates. It is also a major exporter to China, the world's second-largest oil consumer.

Chevron said oil output at Kazakhstan's Tengiz oilfield has yet to resume after Chevron-led operator Tengizchevroil announced a shutdown on Monday following a fire.