Oil extends gain as traders focus on Iran risks and Venezuela

Oil extended a gain as the market weighed US President Donald Trump’s threat against Iran, while also focusing on his administration’s moves to exert control over Venezuela’s exports and energy sector.

West Texas Intermediate was around $58 a barrel after rising 3.2% on Thursday, while Brent was near $62. Trump threatened to hit Iran “hard” if the country’s government killed protesters during a period of unrest. An annual period of commodity index rebalancing is also expected to see cash flow back into oil, according to Citigroup Inc., adding to bullish momentum.

Meanwhile, Trump told Fox News he supports a bipartisan Russian sanctions bill that is up for a legislative vote in Congress as early as next week. The measure is designed to punish buyers of Russian oil, which include China and India.

Oil futures are now heading for a weekly advance after Thursday’s rally — the biggest daily increase since October — though a big surplus this year is expected to put downward pressure on prices in coming months. Goldman Sachs Group Inc. said its clients are the most bearish on oil in 10 years.

“Crude remains caught in a complex dance between heightened geopolitical risk and rising inventory,” said Robert Rennie, the head of commodity research at Westpac Banking Corp. Higher Venezuela flows and rising output elsewhere could see prices trading in the $50s through the first quarter, he added.

Investors continue to digest US moves against Venezuela following the ouster of President Nicolás Maduro. Nearly 20 oil executives, including from Exxon Mobil Corp, Chevron Corp, and veteran wildcatter Harold Hamm, are slated to meet Trump and top officials at the White House on Friday to discuss rebuilding the country’s energy sector.

Chevron, the only American major currently permitted by Washington to operate in Venezuela, is loading tankers with the country’s crude at the fastest pace in seven months. Those cargoes are mainly bound for US refiner Phillips 66.

Trading houses Trafigura Group and Vitol Group are in talks with US refiners to gauge interest in buying Venezuelan oil, and both have obtained preliminary US Treasury licenses to sell the barrels. Measures by the Trump administration could see more flows to American processors at the expense of China.

Chinese refiners have been the biggest buyers of Venezuela crude, which were heavily discounted following US sanctions, but some are now looking at their alternative options, including more expensive supply from Canada.

© 2026 Bloomberg

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