Oil Prices Climb Above $63 Amid Rising Geopolitical Tensions

Oil prices have surged past $63 per barrel as markets reacted to rising geopolitical tensions in the Middle East, according to oilprice.com data on Sunday. The increase follows early gains on Friday as widespread protests in Iran raised concerns that output from one of the region’s major oil producers could be disrupted.

The rebound comes after two days of decline, as investors weighed developments in Venezuela alongside supply concerns from Iran, Russia, and Iraq. Both benchmarks, Brent and West Texas Intermediate (WTI), traded higher on Sunday. WTI futures stood at $59.12 per barrel, while Brent climbed to $63.34, after previously rising above $62.42 on Friday.

Crude prices jumped more than 3% on Thursday amid heightened geopolitical risks spanning from Venezuela to Iran. Friday’s gains were further supported by escalating protests in Iran and remarks by former US President Donald Trump, who claimed that Iran’s Supreme Leader, Ayatollah Ali Khamenei, was considering fleeing the country.

In response to the unrest, Iran reportedly shut down internet access on Friday, a tactic often used during domestic instability. The demonstrations, which began nearly two weeks ago, have resulted in approximately 40 fatalities and around 2,000 arrests. Khamenei condemned the protests, accusing participants of acting under foreign influence, and vowed that the regime would not yield.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said the market is now focused on Iran, where the risk of near-term supply disruption outweighs potential long-term supply recovery should the regime face further instability.

Earlier in the week, oil prices dipped as markets anticipated a potential supply boost from Venezuela. Reports indicated that the US and Venezuelan authorities reached an agreement under which 30–50 million barrels of Venezuelan crude, valued at roughly $2 billion, would be exported to the US. This agreement aimed to increase supplies of heavy crude to Gulf Coast refineries while limiting illicit shipments to other markets.

Political developments in Venezuela also contributed to market volatility. President Nicolás Maduro was captured by US authorities and transferred to the US to face federal charges, including narcotics and terrorism-related offenses, which he denies. Following his detention, Vice President Delcy Rodríguez assumed the role of Acting President to maintain institutional continuity.

Despite the midweek dip—Brent fell to $59.99 and WTI to $56.10 on Wednesday—oil prices have since recovered, with Brent climbing to $63.34 and WTI reaching $59.12 per barrel, reflecting heightened geopolitical risks and concerns over potential supply disruptions.