Oil Prices Slip Amid Geopolitical Tensions Over Iran and U.S. Greenland Remarks

Global oil benchmarks recorded modest losses Friday as geopolitical risks intensified. Brent crude settled at $82.45 per barrel, down $1.00 from the previous day’s close, while West Texas Intermediate (WTI) dropped to $79.63, marking a $0.90 decline. The shift came amid renewed concerns over Iran’s advancing nuclear activities, with international monitors confirming increased enrichment levels at the Fordow facility, raising fears of potential supply disruptions in the Strait of Hormuz. At the same time, market participants reacted to former President Donald Trump’s public remarks during a campaign rally in New Hampshire, where he reiterated his 2017 proposal to purchase Greenland from Denmark. The comment sparked diplomatic backlash and heightened speculation about future instability in the Arctic region, a growing area of strategic interest for energy infrastructure and shipping routes. The combined pressure from Middle East tensions and Arctic policy uncertainty contributed to a risk-off sentiment across commodity markets. Energy traders noted that while current global supply remains stable—with OPEC+ maintaining output cuts through March—any escalation in regional conflicts could quickly tighten supply. Inventories in the U.S. Gulf Coast, a key crude hub, rose by 1.4 million barrels last week, according to industry data, but this did little to offset broader risk aversion. Refiners and energy firms with exposure to European and U.S. markets are monitoring the situation closely, as geopolitical volatility could impact refining margins and shipping logistics. The U.S. Energy Information Administration (EIA) forecasts global oil demand growth of 1.8 million barrels per day in 2026, but this projection remains vulnerable to sudden shocks from the Middle East or Arctic developments.