Crude oil futures climbed sharply on Monday as escalating protests in Iran raised fears of potential supply disruptions in one of the world’s top oil-producing nations. The rally was led by Brent and West Texas Intermediate benchmarks, reflecting growing market anxiety over geopolitical instability.
- Brent crude (BZ=F) rose to $94.32 per barrel, a 2.6% increase.
- WTI crude (CL=F) reached $89.78, up 2.4%.
- Iran produces 3.8 million barrels per day; exports average 2.5 million bpd.
- Potential supply disruption could reduce global supply by up to 100,000 barrels per day.
- Oil-linked ETF OIL saw a 3.1% rise in trading volume.
- U.S. energy officials have not yet activated emergency stock releases.
Global crude prices extended gains Monday amid rising tensions in Iran, where nationwide protests have intensified over the past 72 hours. The unrest, centered in Tehran and several provincial capitals, has disrupted transportation routes and raised concerns about the security of key oil infrastructure, including the Kharg Island export terminal and the South Pars gas field. As of 23:15 GMT, Brent crude futures (BZ=F) traded at $94.32 per barrel, a 2.6% increase from the previous close, while West Texas Intermediate (CL=F) rose to $89.78, up 2.4%. The surge follows a series of attacks on state facilities and reports of military reinforcements being deployed to oil-rich regions. Analysts note that Iran currently produces approximately 3.8 million barrels per day, with exports accounting for roughly 2.5 million barrels daily. Any sustained disruption to export operations could tighten global supply, particularly in Europe and Asia, where refined product demand remains elevated. The International Energy Agency has flagged the situation as a material risk to market stability, citing the potential for a 100,000-barrel-per-day shortfall if protests escalate further. Market participants are closely monitoring developments in real time, with oil-linked exchange-traded funds (OIL) seeing a 3.1% spike in trading volume. Energy stocks, including ExxonMobil (XOM) and Chevron (CVX), also posted gains, reflecting investor anticipation of higher energy prices. The U.S. Department of Energy has warned of possible emergency supply releases if the situation deteriorates, though no formal action has been announced. The volatility underscores the fragility of global oil markets amid ongoing regional tensions. With geopolitical risk premiums now elevated, traders are adjusting positions, particularly in short-term derivatives contracts. The situation remains fluid, with heightened sensitivity to any reports of infrastructure damage or official statements from Tehran.