DTN Oil Update
WTI Crosses $61 as Trump Urges More Protests in Iran
SECAUCUS, N.J. (DTN) -- Crude futures reached 10-week highs Tuesday as U.S. President Donald Trump urged Iranians to continue protesting the regime in Tehran, adding to market concerns about supply from OPEC's fourth-largest producer.
Oil prices had already been on a tear from the start of the session after Trump, in a social media post late on Monday, threated to impose tariffs on any country that did business with Iran. He followed that up with a call on Tuesday for Iranians to heighten their protests and "take over" institutions in the Islamic republic.
"I have cancelled all meetings with Iranian Officials until the senseless killing of protesters STOPS. HELP IS ON ITS WAY," Trump wrote on his Truth Social media site. Trump indicated that his prior offer to negotiate a diplomatic outcome for Iran had passed, with deaths of thousands of people reported by human rights groups there, and that the U.S. might see through with its threat to launch air strikes. Iran, on its part, said it was ready for war with the U.S.
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As OPEC's fourth largest producer with an output of 3.2 million barrels per day (bpd), Iran has limited customers for its oil due to U.S. sanctions imposed since Trump's first presidency in 2018. China is its largest buyer, reportedly acquiring than 80% of Iranian crude exports last year.
Crude prices fell almost 20% last year but rebounded strongly since the start of 2026, despite a global glut of 3.8 million bpd warned by the International Energy Agency. The rally came on the back of the developments in Iran and Venezuela -- another OPEC member whose production of between 800,000 bpd and one million bpd has come under U.S. control.
"We might be at an equilibrium now on supply concerns, with the Iranian production at stake making up more than 80% of the projected glut for this year," observed John Kilduff, partner at New York energy hedge fund Again Capital. According to reports on Monday, oil industry workers were among those who had joined nationwide strikes in Tehran.
U.S. inflation data released on Tuesday had little impact on the market, with the Bureau of Labor Statistics reporting a 2.7% year-on-year growth in December Consumer Price Index -- unchanged from November.
NYMEX WTI for February delivery settled up by $1.65, or 2.8%, at $61.15 barrek (bbl) after a 10-week high at $ 61.50.
The March ICE Brent futures contract closed up $1.60, or 2.5%, at $65.47 after rallying to $65.92.
Among refined products, the front-month ULSD futures climbed by $0.0812 to $2.2356 gallon. Front-month RBOB advanced by $0.0329 to reach $1.8549 gallon.
The U.S. Dollar Index rose by 0.299 points to 98.93 against a currency basket.