Narya (i.e. the "Ring of Fire" or Red Ring) is one of the three Rings of Power that were made originally for the Elves.
Created by Celebrimbor in the Second Age, along with Nenya and Vilya, after Annatar (Sauron) left Eregion, Narya was free of Annatar's influence, having been crafted only by Celebrimbor himself and later hidden from Annatar's grasp, but still bound to the One Ring. According to the Unfinished Tales, at the start of the War of the Elves Celebrimbor gave Narya together with the Ring Vilya to Gil-galad, High King of the Ñoldor. Gil-galad entrusted Narya to his lieutenant Círdan, Lord of the Havens of Mithlond, who kept it after Gil-galad's death. In the Third Age Círdan, knowing Gandalf's true nature and duty, gave him the ring to aid him in his labours."Take this ring, master," he said, "for your labours will be heavy; but it will support you in the weariness that you have taken upon yourself. For this is the Ring of Fire, and with it you may rekindle hearts in a world that grows chill." - Círdan the Shipwright in "the Grey Havens"
It is described as having the power to inspire others to resist tyranny, domination and despair, as well as having the power (in common with the other Three Rings) to hide the wielder from remote observation (except by the wielder of the One) and giving resistance to the weariness of time. it is also thought to have magical properties. For instance Gandalf was particularly skilled with fire using it to light pine cones and send out flames at the wargs in the hobbit and using to light his pipe with his fingers. He also was not burnt by his greatest foe the Balrog during their battle, perhaps because the ring also offered fire resistance.