Oil prices steadied after a sharp rally, closing March‑expiring contracts at $65.84 and WTI at $61.03. Gains of more than 2% on Friday were driven by heightened geopolitical risk premiums as the U.S. escalated naval posturing toward the Middle East.

Trump’s announcement of an armada of U.S. naval forces, including an aircraft carrier group, stoked fears that a flare‑up with Iran could choke crude flows from a key producer. Meanwhile, repairs at Kazakhstan’s Black Sea terminal have restored the Caspian Pipeline Consortium’s export capacity, easing supply concerns.

Investors now weigh a potential supply glut against the backdrop of a Fed meeting later this week, where rates are expected to stay unchanged. Market watchers will look for Fed guidance on future rate cuts, as tightening can dampen demand and lift the U.S. dollar, both of which weigh on oil.

With geopolitical tensions simmering and supply dynamics shifting, oil traders should monitor the Fed’s minutes and any new Middle East developments that could tighten or loosen market sentiment.