Donald Trump's warning about the US fleet's move towards Iran has increased market concerns about the possibility of military conflict in the Middle East.
The statement immediately pushed oil prices higher after falling in the previous trading session. The tensions come as Iran faces a wave of domestic protests following an economic crisis and a crackdown by authorities.
Iran, as a member of OPEC and a major global oil producer, plays a key role in the stability of the world's energy markets.
Analysts see several potential scenarios including negotiations, the status quo or an escalation of conflict that could affect oil flows.
However, energy analysts also noted that the global oil market is still in a state of sufficient supply, thus limiting the impact of a price spike despite increased geopolitical tensions.
