Oil settles higher, posts 6% weekly gain

Oil drilling rigs

Oil prices closed higher on Friday, logging their first weekly gain this month at nearly 6%, driven by concerns that a potential military confrontation between the US and Iran could disrupt crude supplies.

Brent crude for April delivery edged up 0.14%, or 10 cents, to settle at $71.76 a barrel, extending weekly gains to 5.92%.

US WTI for March delivery declined by 4 cents to $66.39 a barrel, but held onto a weekly rise of 5.56%.

The move followed remarks by US President Donald Trump indicating he was considering limited military strikes against Iran within days. Iran’s foreign minister said Tehran was finalizing a counterproposal to Washington’s demands in the latest round of nuclear talks.

Crude prices were also supported by a drawdown in US inventories last week, while markets continued to assess supply prospects amid expectations that the OPEC+ alliance will resume output increases from April.

Separately, JPMorgan analysts said in a note that the global oil surplus that emerged in the second half of 2025 persisted into January and is likely to continue through the year.