Finance
Oil hovers near six-month high as investors track US-Iran tensions
Published by Global Banking & Finance Review®
Posted on January 30, 2026
3 min readLast updated: January 30, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 30, 2026
3 min readLast updated: January 30, 2026
Oil prices hit multi-month highs as US-Iran tensions escalate, affecting global supply. Brent and WTI crude see significant gains amid geopolitical risks.
By Erwin Seba
HOUSTON, Jan 30 (Reuters) - Oil prices dipped a few cents per barrel on Friday, consolidating recent gains and holding near six-month highs on Friday, supported by nagging tensions between the U.S. and Iran.
Brent crude futures settled at $70.69 a barrel, down 2 cents or 0.03%. The March contract expires later on Friday. U.S. West Texas Intermediate crude finished at $65.21 a barrel, down 21 cents or 0.32%.
"It's really all about Iran right now," said John Kilduff, partner with Again Capital. "The market had priced in a lot of geopolitical risk on Iran, but it's difficult to quantify the market at this point. The question is if there is action against Iran, what will the Iranians do?"
On Thursday, oil prices hit their highest since early August. Multiple sources said U.S. President Donald Trump was weighing actions against Iran that included targeted strikes, raising concerns about supply disruptions.
Both the U.S. and Iran have since signalled willingness to engage in dialogue, but Tehran on Friday said its defence capabilities should not be included in any talks.
"These gains have paused amid prospects of a chilly ceasefire between Russia and Ukraine and the possibility that an attack on Iran might not occur, as the Trump administration opens the door for talks on Iran’s nuclear program," said Phil Flynn, senior analyst with Price Futures Group.
The U.S., which has strengthened its military position in the Middle East in recent weeks, issued new sanctions targeting seven Iranian nationals and at least one entity.
A rise in the dollar from four-year lows hit earlier in the week put some pressure on oil prices. Friday's dollar strength followed Trump's announcement that he would pick former Federal Reserve Governor Kevin Warsh to head the U.S. central bank when Jerome Powell's term ends in May.
A stronger dollar can limit demand from oil buyers paying in other currencies.
"Rising U.S. crude oil output after shutdowns and Kazakhstan nearing the resumption of production at the Tengiz oilfield also contribute to the change in sentiment, and given the week’s bullish performance, it is reasonable to expect some profit-taking ahead of the weekend," said PVM Oil Associate analyst Tamas Varga.
Meanwhile, peak maintenance periods for Russian primary oil refining this year are expected this month and in September, based on Reuters calculations using estimates from industry sources.
A Reuters poll of 32 analysts found that most expect prices to hold near $60 a barrel this year as the prospect of oversupply offsets potential disruption from geopolitical tensions. [O/POLL]
(Reporting by Erwin Seba in Houston, Seher Dareen ,Shariq Khan, Stephanie Kelly, Florence Tan and Siyi LiuEditing by David Goodman, Jane Merriman and David Gregorio)
The article discusses rising oil prices due to escalating US-Iran tensions and potential supply disruptions.
Oil prices have surged due to geopolitical risks, with Brent and WTI crude experiencing significant monthly gains.
US-Iran tensions, potential military actions, and disruptions in oil supply from other regions are key factors.
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