Trump pressures Iran, WTI crude oil climbs above $60
2026-01-13 18:07:39
On Tuesday (January 13), West Texas Intermediate (WTI) crude oil prices rose for the fourth consecutive trading day during the European session, trading at $60.63 per barrel, up 1.90%. US President Trump's announcement of new tariffs on Iran's trading partners exacerbated supply concerns, pushing WTI prices to their highest level in six weeks.
Trump announced a 25% tariff on goods from all countries that do business with Iran. This move further increases pressure on Iran amid widespread nationwide protests.
ING strategists noted, "With major U.S. and Iranian oil customers having reached a trade truce, we question whether the U.S. will disrupt this situation by imposing tariffs."
In addition to imposing new tariffs, Trump also warned that military action against Iran could not be ruled out, further exacerbating the uncertainty in the region.
These developments have raised market concerns that Iran, a major global oil supplier, may face disruptions to its oil exports.
Goldman Sachs predicts that international oil prices may gradually decline this year as new crude oil supplies enter the market, creating an oversupply situation. However, geopolitical risks related to Russia, Venezuela, and Iran could continue to exacerbate oil price volatility.
Ukrainian officials said Russian forces attacked Ukraine's two largest cities earlier Tuesday, further escalating geopolitical tensions. Meanwhile, supply problems are worsening: Kazakhstan's oil production has been severely impacted by severe weather, maintenance work, and damage to Russian infrastructure caused by the Ukrainian strikes.
"In our view, the turmoil in Iran has increased the geopolitical risk premium in oil prices by about $3 to $4 per barrel," Barclays said in a report.
The market also faces concerns about oversupply: with Venezuela expected to resume crude oil exports, more crude oil supplies could flood the market. Following President Maduro's ouster, Trump stated last week that the Caracas government might hand over up to 50 million barrels of oil subject to Western sanctions to the United States.
Market attention is also shifting to the US Consumer Price Index (CPI) data. If US inflation is higher than expected, it could prompt the market to lower its expectations for interest rate cuts, which would then be bearish for oil prices.
Technical Analysis
(WTI crude oil daily chart source: FX678)
WTI crude oil prices have broken out of the downward channel since July and have surpassed the $60 mark.
Supported by upward momentum, gains are expected to extend further to the October 24 high of $62.50 per barrel and the 200-day simple moving average (200 SMA). If oil prices break through these resistance levels, the next target will be $65 per barrel.
On the support level, initial support is located at $58.50 per barrel, which is also the 50-day simple moving average (50 SMA) and the upper rail of the previous descending channel. If oil prices break below this support level, they could fall further to the October low of $56 per barrel.
Trump announced a 25% tariff on goods from all countries that do business with Iran. This move further increases pressure on Iran amid widespread nationwide protests.
ING strategists noted, "With major U.S. and Iranian oil customers having reached a trade truce, we question whether the U.S. will disrupt this situation by imposing tariffs."
In addition to imposing new tariffs, Trump also warned that military action against Iran could not be ruled out, further exacerbating the uncertainty in the region.
These developments have raised market concerns that Iran, a major global oil supplier, may face disruptions to its oil exports.
Goldman Sachs predicts that international oil prices may gradually decline this year as new crude oil supplies enter the market, creating an oversupply situation. However, geopolitical risks related to Russia, Venezuela, and Iran could continue to exacerbate oil price volatility.
Ukrainian officials said Russian forces attacked Ukraine's two largest cities earlier Tuesday, further escalating geopolitical tensions. Meanwhile, supply problems are worsening: Kazakhstan's oil production has been severely impacted by severe weather, maintenance work, and damage to Russian infrastructure caused by the Ukrainian strikes.
"In our view, the turmoil in Iran has increased the geopolitical risk premium in oil prices by about $3 to $4 per barrel," Barclays said in a report.
The market also faces concerns about oversupply: with Venezuela expected to resume crude oil exports, more crude oil supplies could flood the market. Following President Maduro's ouster, Trump stated last week that the Caracas government might hand over up to 50 million barrels of oil subject to Western sanctions to the United States.
Market attention is also shifting to the US Consumer Price Index (CPI) data. If US inflation is higher than expected, it could prompt the market to lower its expectations for interest rate cuts, which would then be bearish for oil prices.
Technical Analysis
(WTI crude oil daily chart source: FX678)
WTI crude oil prices have broken out of the downward channel since July and have surpassed the $60 mark.
Supported by upward momentum, gains are expected to extend further to the October 24 high of $62.50 per barrel and the 200-day simple moving average (200 SMA). If oil prices break through these resistance levels, the next target will be $65 per barrel.
On the support level, initial support is located at $58.50 per barrel, which is also the 50-day simple moving average (50 SMA) and the upper rail of the previous descending channel. If oil prices break below this support level, they could fall further to the October low of $56 per barrel.
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