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Geopolitical tensions cause oil prices to rise above $63


Oil prices have climbed above $63 per barrel, according to data from oilprice.com on Sunday. The rise followed early gains on Friday as protests in Iran escalated, unsettling market participants amid fears that supply from one of the Middle East’s biggest oil producers could be threatened.

The uptick came after a rebound on Thursday, following two days of decline, as investors weighed developments in Venezuela and concerns over supplies from Russia, Iraq, and Iran.

Both the WTI and Brent benchmarks traded higher on Sunday as the market assessed potential supply risks linked to the unrest in Iran. US benchmark crude futures, WTI, traded at $59.12 per barrel, while the international benchmark, Brent, rose above $62.42 on Friday and stood at $63.34 as of Sunday.

Oilprice.com reported that crude prices jumped by more than 3 per cent on Thursday amid heightened geopolitical risks stretching from Venezuela to Iran.

On Friday, oil prices were further supported by escalating protests in Iran and comments by the United States President, Donald Trump, who said late on Thursday that Iran’s leader, Ayatollah Ali Khamenei, was planning to flee the country following the unrest in the OPEC producer.

The Ayatollah was “looking to go someplace,” Trump told reporters when asked about reports that the Iranian leader could escape to Russia.

Iran reportedly cut off internet access on Friday, a move the regime frequently adopts during periods of unrest. Protests that began nearly two weeks ago have reportedly left about 40 people dead, with around 2,000 detained as security forces attempt to suppress the demonstrations.

Khamenei on Friday condemned the protests, accusing demonstrators of being “vandals” acting on behalf of President Trump. In a televised address delivered amid the internet blackout, he vowed that the Islamic Republic would “not back down” to protesters and Trump.

Crude oil prices traded higher for a second consecutive day on Friday, following the unrest, and sustained the gains through Sunday.

Market attention has now shifted squarely to Iran, “where the risk of near-term supply disruptions outweighs the prospect of a future supply pickup should the regime collapse,” Ole Hansen, Head of Commodity Strategy at Saxo Bank, was quoted as saying on Friday.

Earlier in the week, oil prices fell on Wednesday amid expectations of increased supply after Trump said Venezuela would hand over up to 50 million barrels of crude to the US.

Reports said Venezuela and the United States reached an agreement under which authorities in the South American country would export oil valued at about $2bn to the US.

Brent crude fell below $60 per barrel on Wednesday evening after Trump said “interim authorities” in Venezuela would provide between 30 million and 50 million barrels of “high quality” oil to the US at market prices, estimated at close to $2bn.

Reuters noted that the deal with the US-compliant leadership in Venezuela would boost supplies of heavy crude to US Gulf Coast refineries and potentially curb illicit shipments of discounted Venezuelan crude to China.

Venezuela entered 2026 amid heightened uncertainty after US forces captured President Nicolás Maduro and transferred him, alongside his wife, Cilia Flores, to the United States to face federal charges.

Maduro was later arraigned in a US court, where prosecutors revived longstanding allegations, including narco-terrorism conspiracy and cocaine trafficking offences, which he denied.

Following his detention, Venezuela’s Supreme Court announced that Vice President Delcy Rodríguez had assumed office as Acting President, citing the need for institutional continuity. The political developments have renewed focus on the future of the country’s economy and its oil-dependent energy sector, even as Trump said the US would run the oil-rich nation.

As Brent traded at $59.99 per barrel on Wednesday evening, WTI fell to $56.10. However, prices have since rebounded, with Brent rising to $63.34 and WTI to $59.12 per barrel.

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