Oil Prices Surge Nearly 3% After US Sends Naval Fleet to Iran

Oil prices surged nearly 3% on the evening of January 23, 2026, following the US decision to send a naval fleet to the Middle East and announce new sanctions on Iranian oil.

Brent crude rose by $1.82, or 2.84%, closing at $65.88 per barrel, while West Texas Intermediate (WTI) increased by $1.71, or 2.88%, closing at $61.07 per barrel.

The price hike was driven by increased geopolitical tensions after US President Donald Trump imposed new sanctions targeting Iranian oil transport vessels and announced the deployment of US warships, including an aircraft carrier and missile destroyers, heading towards the Middle East.

This move intensified concerns over potential disruptions in oil supply from the region, especially as Kazakhstan, another major oil producer, continues to face difficulties in its production after a fire at the Tengiz oil field.

The US Treasury announced sanctions against nine vessels and eight companies involved in transporting Iranian oil and petroleum products. Despite these measures, oil demand remains high, with the market closely monitoring any further disruptions.

In the same period, Kazakhstan's oil output has been severely affected by a fire at the Tengiz field. The country’s oil production is expected to average only 1-1.1 million barrels per day in January, compared to its normal production of around 1.8 million barrels per day. This has compounded existing supply issues, especially following drone attacks on Kazakhstan’s Black Sea export terminal.

In contrast, Trump's earlier geopolitical moves, including a threat to impose tariffs on Europe, saw oil prices dip around 2% on Thursday after he backtracked on the tariffs and dismissed the possibility of military action against Europe.

The US has increased its military presence in the region, with an agreement reached between Denmark, NATO, and the US to allow the US full access to Greenland’s bases.