Oil Gains as Worries Over US-Iran Tensions Stretch Into Weekend

Liberty Lift Solutions LLC pumpjacks near Crane, Texas, US, on Saturday, March 15, 2025.

The Permian Basin, a sprawling shale patch that lies beneath Texas and New Mexico, is North America's most prolific shale patch. Photographer: Justin Hamel/Bloomberg Photo by Justin Hamel /BloombergArticle content(Bloomberg) — Oil rallied as traders braced for any escalation to US-Iran tensions heading into the weekend after President Donald Trump signaled he was “not happy” with negotiations aimed at averting an imminent US attack.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentWest Texas Intermediate jumped 2.8% to close above $67 a barrel, its highest settlement since August. Trump urged Iran to make a deal over its nuclear program after griping that it wasn’t negotiating in good faith, adding that there would be “additional talks today” after the two sides failed to reach an agreement in Geneva earlier this week. Meanwhile, the US, China and several other nations advised citizens to leave some parts of the region. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“They cannot have nuclear weapons, and we’re not thrilled with the way they’re negotiating,” Trump told reporters at the White House. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentConcerns about a potential US strike on Iran have helped oil prices jump more than 15% so far this year, offsetting broad expectations of a supply glut. The market has been on edge as Trump has ordered the largest US military buildup in the region since the 2003 invasion of Iraq, giving the Islamic Regime limited time to strike a deal.Article content“President Trump has a personal, strong aversion to nuclear weapons, especially coming into the hand of Iranians, more so than any predecessors, and it’s almost more important than his aversion to high oil prices,” Bob McNally, president of Rapidan Energy Group, said in a live briefing on Thursday.Article contentOdds of a US strike on Iran by March 1 surged on Friday, according to the Polymarket prediction markets site. They were at roughly 26% by 3 p.m. in New York, compared with 9% at the start of the trading session.Article contentDisagreement over Iran’s uranium-enrichment capabilities also heightened concerns about potential US military action ahead of the weekend, traders said. United Nations atomic inspectors found that Iran is conducting regular and unexplained activity at bombed uranium-enrichment sites. Article contentArticle contentFreight rates have climbed in recent days, driven by a major Korean shipowner’s bullish tanker bet and geopolitical tensions. Traders are watching for how tensions could impact Iranian oil flows as well as shipping through the Strait of Hormuz, a narrow passage separating Iran and the Arabian peninsula. Article content“Iran has the capability to make Hormuz unsafe for commercial passage for a time measured in weeks, not hours or days,” Rapidan’s McNally added.Article contentTwo shipping companies said on Friday that they’re rerouting vessels to sail south of Africa instead of transiting the Red Sea and Suez Canal. Traffic through the key corridor remains vulnerable to attacks by Yemen-based Houthi militants, an Iran-backed group that has targeted ships in the Red Sea.Article contentThis weekend, traders will also be closely watching a scheduled OPEC+ supply meeting on Sunday, as conflict risks cloud the outlook.Article content“OPEC+ is likely to increase oil production only slightly from April onwards, but geopolitical risks mean that there is unlikely to be any pressure on prices — for the time being,” according to a report from Commerzbank.Article content—With assistance from Alex Longley and Nicholas Lua.Article contentTrending Embassies evacuate in Middle East with Trump 'not happy' on Iran PMN Business The (high) opportunity cost of paying off your mortgage early Mortgages Australia ships LNG 25,000 kilometres to Eastern Canada amid Asian slump Oil & Gas China halts Canada canola meal tariffs, adding to trade thaw Agriculture Posthaste: Canada's housing affordability 'crisis' spreads, but this city is still a bright spot, says CMHC News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Embassies evacuate in Middle East with Trump 'not happy' on Iran PMN Business The (high) opportunity cost of paying off your mortgage early Mortgages Australia ships LNG 25,000 kilometres to Eastern Canada amid Asian slump Oil & Gas China halts Canada canola meal tariffs, adding to trade thaw Agriculture Posthaste: Canada's housing affordability 'crisis' spreads, but this city is still a bright spot, says CMHC News