Oil Prices Hit Seven-Week High as Fears Grow Over Iran Export Disruptions
Global oil prices settled at their highest levels in seven weeks on Monday as investors grew increasingly concerned that Iran’s oil exports could be disrupted amid escalating political unrest and the threat of U.S. retaliation. Iran, a sanctioned member of OPEC, has been grappling with widespread anti-government protests, raising fears that supply from the Middle East could tighten further.
Brent crude futures rose 53 cents, or 0.8%, to settle at $63.87 per barrel, while U.S. West Texas Intermediate (WTI) gained 38 cents, or 0.6%, to close at $59.50 per barrel. The settlement marked Brent’s highest close since November 18 and WTI’s strongest finish since December 5, reflecting renewed geopolitical risk premiums in energy markets.
Tensions intensified after U.S. President Donald Trump said Washington could engage directly with Iranian officials but warned that military action remained an option following a deadly crackdown on protesters. Although Iran currently holds a record volume of oil at sea—equivalent to roughly 50 days of output—analysts note that shipments to China have slowed as Tehran seeks to shield its exports from potential U.S. strikes, according to tanker-tracking data.
Price gains were partially capped by expectations that oil supply could increase from Venezuela, another sanctioned OPEC member. Following the ouster of former President Nicolás Maduro, the U.S. government said up to 50 million barrels of sanctioned Venezuelan crude could be transferred to the United States. Major trading houses have already begun securing tankers, with Trafigura confirming its first cargo is expected to load within days.
Meanwhile, markets are also watching supply risks from Russia after Ukrainian strikes targeted energy infrastructure, alongside declining exports from Azerbaijan and uncertainty surrounding future oil exploration policy in Norway. Despite Monday’s rally, Goldman Sachs said oil prices could drift lower later this year as new supply enters the market, though ongoing geopolitical flashpoints in Iran, Russia, and Venezuela are expected to keep volatility elevated.
source: Business day