Oil prices rise on short covering and potential Middle East strikes
Oil markets closed higher on Friday as investors balanced short-covering ahead of a long weekend against ongoing geopolitical risks in the Persian Gulf region.
Insights:
Global oil prices settled higher on Friday, January 16, 2026, as investors focused on technical trading and geopolitical risks. Brent Crude Oil ended the session at $64.13 per barrel, gaining 37 cents or 0.58 percent. Similarly, WTI Crude Oil rose by 25 cents, or 0.42 percent, to settle at $59.44 per barrel. Analyst Phil Flynn phil flynnnoted that the primary driver for the Friday gains was short-covering by traders ahead of the three-day Martin Luther King holiday weekend in the United States 
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US.The market remains sensitive to potential military action in the Middle East following a week of volatility. Earlier in the week, both benchmarks hit multi-month highs after protests flared up in Iran 
IRand Donald Trump donald trumpsignaled the possibility of United Statesmilitary strikes. These tensions are punctuated by the scheduled arrival of the USS Abraham Lincoln carrier strike group in the Persian Gulf next week, following its recent operations in the South China Sea. Any escalation in the region poses a risk to the Strait of Hormuz, a critical chokepoint through which approximately 25 percent of all seaborne oil supplies flow.
IRand Donald Trump donald trumpsignaled the possibility of United Statesmilitary strikes. These tensions are punctuated by the scheduled arrival of the USS Abraham Lincoln carrier strike group in the Persian Gulf next week, following its recent operations in the South China Sea. Any escalation in the region poses a risk to the Strait of Hormuz, a critical chokepoint through which approximately 25 percent of all seaborne oil supplies flow.
