Oil prices climb toward $70 as US-Iran rift deepens

Crude oil prices have risen close to $70 per barrel, up from $67 last week. The increase is due to growing tensions between the United States and Iran, which have raised fears of possible supply problems.

The price rise came after nuclear talks between the US and Iran in Oman failed to reach an agreement.

Market concerns increased further when the US Department of Transportation advised American commercial ships to avoid Iranian waters. This warning raised fears that the situation could get worse.

As of the latest checks, Brent crude was trading at $69.25 per barrel, while Murban crude was selling at $69.51.

Experts say worries about security around the Strait of Hormuz  a major route for global oil shipments   are affecting prices.

Recent US military action against an Iranian drone and rising tensions in the Arabian Sea have also added to market uncertainty.

At the same time, supply data shows mixed results. According to S&P Global, OPEC+ production dropped to 42.56 million barrels per day (bpd) in January 2026. This is 270,000 bpd lower than in December, marking the first monthly decline in 13 months.

The drop was mainly due to lower production in Kazakhstan, Russia, Nigeria, and Libya.

OPEC’s own crude production also fell to 28.34 million bpd, about 60,000 bpd less than in December. The reduction was largely caused by lower output from Nigeria and Libya.

Speaking on the situation, the National President of the Oil and Gas Service Providers Association of Nigeria, Mazi Colman Obasi, said the oil market remains unstable.

“The next few weeks will continue to be unstable,” he said.

Although experts expect a global oil surplus in 2026, prices have stayed high because of political tensions and unclear stockpiling activities in countries like China.