Brent and WTI crude futures rose nearly 1% in Asian trading after President Donald Trump warned of a U.S. naval armada headed toward Iran. The move adds a geopolitical risk premium to an already bullish market, with crude headed for a fifth consecutive weekly gain.

Trump’s comments aboard Air Force One came amid reports of an aircraft carrier and destroyers deploying to the Middle East. Any military action could disrupt oil supplies from Iran, a major OPEC producer and key supplier to China. Markets are pricing in higher volatility as tensions escalate.

The price increase also reflects stronger demand forecasts from the IEA and positive Chinese economic data. A weakening U.S. dollar and expectations of Fed rate cuts further support the complex. Investors now watch for concrete military movements and Tehran’s response to the protests.

With supply disruptions now a tangible risk, energy traders will weigh geopolitical headlines against fundamental data. The situation could quickly reverse if diplomacy prevails, but for now, the market’s risk premium is firmly in play.