Crude Oil Prices Rise on 13 January 2026 as Trump Targets Iranian Crude Trade

Crude prices moved upwards following comments from US President Donald Trump confirming new tariffs on countries doing business with Iran. While details remain limited, the announcement has prompted caution across oil markets. 

Traders are weighing potential supply risks against ongoing concerns of global oversupply, keeping price movements measured but watchful.

Market reaction to tariff announcement

West Texas Intermediate climbed to around $60 a barrel after gaining more than 6% across the previous three sessions. Brent crude settled just under $64 a barrel. 

Both benchmarks are trading near their highest levels since early December, reflecting investor response to the proposed US trade measures.

Trump stated on social media that a 25% tariff on goods from nations conducting business with Iran would take effect immediately. However, no clarification was provided on implementation or exemptions, leaving markets to interpret the policy’s practical impact.

Potential impact on China and global trade

Any escalation in trade measures risks renewing tensions with China, the world’s largest crude importer. 

China is also the primary buyer of Iranian oil, accounting for the majority of Iran’s exports.

If Chinese imports of Iranian crude are disrupted, broader global supply chains could be affected.

Supply concerns offset overs upply narrative

Iran’s daily oil exports account for just under 2% of global demand. Any disruption to these flows could reduce available supply and counterbalance ongoing concerns of a global surplus that has pressured prices since mid-June.

Meanwhile, oil inventories at a key Iranian export terminal have reportedly fallen by about one-fifth since the start of the year. This may indicate efforts to move stockpiles in anticipation of potential trade restrictions or regional instability.

Read More: India-EU Trade Deal Nears Completion as US Talks Continue.

Conclusion

Oil markets are currently balancing the risk of supply disruption from potential US-Iran trade measures against broader concerns of oversupply. With policy details still unclear, traders are likely to remain cautious, keeping prices supported but sensitive to further political developments.

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