Oil Prices Climb for Fourth Session as Iran Unrest and Supply Risks Fuel Market Fears

Oil prices continued to rise during Asian trading on Tuesday, extending gains for a fourth consecutive session as mounting geopolitical tensions and global supply disruption risks lifted market sentiment. Brent crude and U.S. West Texas Intermediate (WTI) both advanced amid concerns that instability in key producing regions could tighten global oil supply in the near term.

Brent crude futures for March delivery gained around 0.4% to trade near $64.10 per barrel, while WTI crude futures rose a similar 0.4% to approximately $59.70 per barrel. The Brent benchmark recently touched a seven-week high, while WTI climbed to its strongest level in about a month, reflecting growing risk premiums priced into the oil market.

A major driver behind the rally is escalating unrest in Iran, one of the largest producers within the Organization of the Petroleum Exporting Countries (OPEC). Iran is experiencing its most intense anti-government protests in years, marked by widespread violence and reports of significant casualties following a heavy security crackdown. The situation has raised fears of potential supply disruptions from the Middle East, a region critical to global energy markets.

U.S. President Donald Trump further heightened uncertainty by warning of possible military action if Iranian authorities continue using lethal force against protesters. He also announced plans to impose a 25% tariff on any country doing business with Iran, a move aimed at increasing economic pressure on Tehran. Analysts note that China remains a major buyer of Iranian oil, and it is still unclear whether the threat of secondary tariffs will meaningfully curb Chinese imports.

Supply concerns are also emerging outside the Middle East. Russia’s oil export infrastructure has faced repeated attacks amid the ongoing Ukraine conflict. Ukrainian strikes have targeted key facilities, including the Caspian Pipeline Consortium terminal near Novorossiysk. As a result, exports of Kazakh oil through the CPC terminal are expected to fall sharply this month, potentially coming in around 45% below earlier projections.

Partially offsetting these risks, Venezuela is preparing to re-enter global oil export markets following political developments in the country. The potential return of Venezuelan barrels could add supply over time, though immediate market focus remains firmly on geopolitical instability and near-term disruption risks driving oil prices higher.