Oil prices advanced on Friday as escalating protests in Iran unsettled markets and revived concerns over potential supply disruptions from one of the Middle East’s largest producers.
By 6:30 p.m. WAT, both global benchmarks had extended their gains. U.S. West Texas Intermediate (WTI) rose to $59.42 per barrel, up $1.66 or 2.87%, while Brent crude climbed to $63.62 per barrel, gaining $1.63 or 2.63%.
The rally followed a sharp surge on Thursday, when crude jumped more than 3% amid rising geopolitical tensions spanning Venezuela, Iran, Russia, and Iraq.
Iran Unrest Drives Supply Concerns
Market sentiment remained focused on Iran, where protests that began nearly two weeks ago have intensified. Iranian authorities have reported about 40 deaths and roughly 2,000 detentions as security forces attempt to suppress demonstrations calling for political change.
On Thursday night, U.S. President Donald Trump told reporters that Iran’s Supreme Leader, Ayatollah Ali Khamenei, was “looking to go someplace,” after being asked about reports suggesting Khamenei might flee to Russia.
On Friday, Iranian authorities shut down Internet access, a tactic frequently used during periods of unrest. In a televised address delivered amid the blackout, Khamenei denounced the protests, labeling demonstrators “vandals” and accusing them of acting on behalf of President Trump. He vowed that the Islamic Republic would “not back down.”
As unrest deepened, crude prices extended gains for a second consecutive day. According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, “the risk of near-term supply disruptions is outweighing the prospect of a future supply pickup should the regime collapse.”
Venezuela Developments Lift Thursday Prices
Oil markets had already surged on Thursday after two days of declines. According to Reuters, Brent futures rose $2.03, or 3.4%, to $61.99 per barrel, while WTI gained $1.77, or 3.2%, to $57.76, marking a two-week high. Brent recorded its highest close since December 24.
Investors reacted to fast-moving developments in Venezuela. Two sources told Reuters that foreign embassies in Caracas were arranging visits for representatives of U.S. and European oil companies following Washington’s announcement of a $2 billion oil deal and the supply of U.S. goods to the country.
At the same time, the U.S. seized two Venezuela-linked oil tankers in the Atlantic, one sailing under Russia’s flag. The action formed part of President Trump’s broader effort to reshape oil flows in the Americas and pressure Venezuela’s socialist government.
U.S. forces also captured Venezuelan President Nicolás Maduro in a military raid in Caracas, after which Washington intensified its blockade of sanctioned vessels moving to and from the OPEC member.
Despite the dramatic developments, analysts at Ritterbusch and Associates said the market response remained restrained. “The complex is rebounding, with the crude benchmarks back to about levels of last Friday’s close before the U.S. removal of Maduro,” the firm said. However, it added that meaningful volumes of Venezuelan crude reaching the U.S. Gulf Coast could still take years.
Meanwhile, the U.S. Senate advanced a resolution that would bar President Trump from taking further military action against Venezuela without congressional approval. U.S. Energy Secretary Chris Wright said Washington could allow limited roles for both the U.S. and China in Venezuela but would not permit Beijing to exert major control.
Russia, Iraq, and Iran Add to Market Risk
Geopolitical risks extended beyond Iran and Venezuela. On Thursday, a Russia-bound oil tanker suffered a drone attack in the Black Sea, prompting it to request assistance from the Turkish Coast Guard and divert from its route, according to Lloyd’s List Intelligence and a maritime security source.
Traders also monitored Iraq after the country nationalized the West Qurna 2 oilfield amid U.S. sanctions on Russia’s Lukoil, further complicating supply dynamics.
Together, unrest in Iran, enforcement actions in Venezuela, security incidents involving Russian shipping, and political shifts in Iraq have renewed market focus on supply security rather than demand. As a result, crude prices have remained supported despite broader concerns about global growth.