Iran declares full-scale war on US-Israel-Europe
December 29, 2025
Baker Hughes reports 409 oil rigs are in service, down from 483 at this time last year.
On Friday, the energy markets were lower on an optimistic tone from President Trump and President Zelensky on their talks to move the peace agreement closer to a reality. But over the weekend Russian and Ukraine continue to attack each other and markets are higher to start this new week on this and other geopolitical issues. The Russian and Ukraine situation is constructive but there are still issues to be work out and that has offered some support.
Israel carried out airstrikes in Yemen adding to the geopolitical news. Iran has declared a full-scale war on the US, Israel, and Europe. All this news has the energy markets trading higher but again I will say that this is a Holiday week with a limited number of traders and limited volume which can add to the volatility.
China has pledged to expand fiscal spending in 2026, signaling stronger oil demand from the world’s largest crude oil importer. In addition, Beijing is expected to continue stockpiling crude, which will help adsorb the current surplus of roughly 2 million barrels per day.
Russia’s government has extended its temporary export ban on motor gasoline and certain diesel fuels until February 28, 2026, as announced on December 27, 2025, to ensure domestic supply stability.