Investing.com - U.S. oil moved higher on Friday, after the U.S. administration threatened to impose new sanctions on Iran following a missile test by Tehran, fueling concerns over fresh geopolitical tensions between the two countries.
U.S. crude futures for March delivery were up 0.39% at $53.76 a barrel, just off Thursday’s five-week highs of $54.34 a barrel.
On the ICE Futures Exchange in London, the April Brent contract gained 0.41% to trade at $56.79 a barrel, close to the previous session’s five-week peak of $57.45.
Oil prices were boosted after U.S. President Donald Trump suggested the possibility of imposing new sanctions on multiple Iranian entities, seeking to increase pressure on Tehran.
The warning came after a ballistic missile test was carried out by Iran.
Prices also strengthened after Russia's energy minister said global oil output was cut by 1.4 million barrels per day (bpd) last month as part of the deal last year between OPEC and other producers.
January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day.
If carried out as planned, the deal should reduce global supply by about 2%.