Oil prices climb 2% to five-week high on Russia, Iran supply worries

Oil prices climbed about 2% to a five-week high on Monday on worries supplies could decline if U.S. President Donald Trump follows through on threats to impose more tariffs on Russia and to possibly attack Iran.

Brent futures were up $1.11, or 1.5%, to settle at $74.74 a barrel, while U.S. West Texas Intermediate crude rose $2.12, or 3.1%, to settle at $71.48.

That was the highest close for Brent since February 24 and the highest close for WTI since February 20.

Brent's premium over WTI fell to $3.02 a barrel, its lowest since July 2024.

Analysts have said when Brent's premium over WTI falls below $4 a barrel, it does not make much economic sense for energy firms to send ships across the ocean to pick up U.S. crude, which should result in lower U.S. exports.

Trump said on Sunday he was "pissed off" at Russian President Vladimir Putin and will impose 25%-50% secondary tariffs on buyers of Russian oil if he feels Moscow is hindering Trump's efforts to end the war in Ukraine. 

"(Trump's) threat on secondary tariffs on Russia and Iranian oil is a factor oil market participants are tracking, although he has indicated he is not planning to introduce them for now," said UBS analyst Giovanni Staunovo. “But, there is a rising risk of larger supply risks down the road.”