Finance
Oil prices rise for a third day on increasing concerns of Iran attack
Published by Global Banking and Finance Review
Posted on January 29, 2026
2 min readLast updated: January 29, 2026
Quick Summary
Oil prices rose for the third day due to U.S. threats against Iran, with Brent and WTI reaching new highs. Declining U.S. crude inventories also supported prices.
Oil Prices Climb for Third Consecutive Day Amid Iran Tensions
Impact of Geopolitical Tensions on Oil Prices
By Sam Li and Trixie Yap
Market Reactions to U.S. Military Threats
BEIJING, Jan 29 (Reuters) - Oil prices rose for a third day on Thursday on increasing concerns the U.S. may carry out a military attack on key Middle Eastern producer Iran that could disrupt supply from the region.
U.S. Crude Inventory Decline
Brent crude futures rose 50 cents, or 0.73%, to $68.9 a barrel by 0216 GMT, but U.S. West Texas Intermediate crude climbed 58 cents, or 0.92%, to $63.79 a barrel.
Analysts' Price Projections
Both contracts have climbed about 5% from January 26 and are at their highest since September 29.
Prices are rising as U.S. President Donald Trump has increased pressure on Iran to end its nuclear programme with threats of military strikes and as a U.S. 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 U.S. sources familiar with the discussions.
"The potential for Iran getting hit has escalated the geopolitical premium of oil prices by potentially $3 to $4 (per barrel)," analysts at Citi said in a note on Wednesday. They added that further geopolitical escalation could push prices to as high as $72 a barrel for Brent.
An unexpected drop in crude stockpiles in the U.S., the world's biggest oil consumer, also supported prices.
U.S. crude inventories fell by 2.3 million barrels to 423.8 million barrels in the week ended January 23, the Energy Information Administration said on Wednesday, compared with analysts' expectations in a Reuters poll for a 1.8 million-barrel rise.
"This development suggests that the short-term supply–demand balance has tightened, reflecting steady refinery demand and constrained barrels available to the market," said Linh Tran, a market analyst at XS.com.
Overall, Citi said oil prices may stay elevated due to rising geopolitical risks, U.S. restrictions on Russian oil purchases and continued Chinese buying, even as markets entered the year expecting a large oversupply.
(Reporting by Sam Li and Trxie Yap; Editing by Christian Schmollinger)
Key Takeaways
- •Oil prices increased for the third consecutive day.
- •Concerns over potential U.S. military action against Iran.
- •Brent crude and WTI prices have reached new highs.
- •U.S. crude inventories unexpectedly declined.
- •Geopolitical risks continue to influence oil markets.
Frequently Asked Questions about Oil prices rise for a third day on increasing concerns of Iran attack
1What is crude oil?
Crude oil is a natural, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. It is extracted from the ground and refined into various petroleum products, including gasoline, diesel, and jet fuel.
2What is Brent crude?
Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices globally and is used to price two-thirds of the world's internationally traded crude oil supplies.
3What are U.S. crude inventories?
U.S. crude inventories refer to the stock of crude oil held in storage facilities across the United States. These inventories are monitored as they can indicate supply and demand trends in the oil market.