Iran Heats Up, Oil Holds at One-Month High
Oil prices held steady near one-month highs on Monday after turmoil in Iran re-emerged the risk of supply disruptions from one of OPEC's largest producers. In recent trading, Brent was around US$63 per barrel and WTI was around US$59 per barrel, indicating the market still has a "risk premium," although gains are limited.
The market believes potential disruptions to Iran's daily exports could offset the global oversupply narrative that has previously depressed prices and made investors increasingly bearish. However, market participants are likely waiting for evidence of concrete disruptions—such as a decline in exports or disruptions in distribution channels—before pushing for a more aggressive rally.
This turmoil is also considered the most significant challenge for Iranian Supreme Leader Ayatollah Ali Khamenei since the nationwide protests in 2022. Iran is the fourth-largest crude oil producer in OPEC, so any escalation leading to production/export disruptions could potentially be quickly felt in global prices.
Source: Newsmaker.id
