Oil prices stabilized after recording their biggest four-day gains in over six months, as market attention turned to geopolitical developments surrounding Iran and a scheduled White House meeting to discuss the situation.

Current Price Levels and Recent Performance

West Texas Intermediate (WTI) crude traded near $61.00 per barrel, following substantial gains of over 9.00% across the previous four trading sessions. Brent crude closed above $65.00 on Tuesday, reflecting the sustained momentum in global oil markets.

Iran Tensions Drive Market Premium

Traders are closely monitoring political unrest in Iran and the possibility of American intervention, which could potentially threaten the country's substantial oil production capacity of approximately 3.30 million barrels per day. President Trump urged Iranians to continue protests against Supreme Leader Ayatollah Ali Khamenei's government, stating he would "act accordingly" once he assesses the scale of casualties among demonstrators.

Energy Secretary Chris Wright indicated on Fox News that the United States would "happily be a commercial partner" to achieve "better price realizations" for Iranian crude if the current regime were to fall. This development has added a geopolitical risk premium to oil prices.

Market Dynamics and Supply Concerns

The turmoil in Iran, OPEC's fourth-largest producer, combined with ongoing upheaval in Venezuela, has reintroduced a premium into oil pricing. This shift comes after a challenging period of five consecutive monthly losses driven by expectations of oversupply in global markets.

The recent rally has surprised market participants who had maintained bearish positions, catching many traders off guard after the extended period of declining prices.

US Inventory Data and Regional Disruptions

According to industry reports, US crude stockpiles increased by 5.30 million barrels last week, representing the largest weekly build in two months. Official confirmation of these figures is expected with the release of government data on Wednesday.

In the Black Sea region, two oil tankers were attacked near the loading terminal for the Caspian Pipeline Consortium, creating complications for Kazakhstan's crude export operations. These shipments were already facing challenges from severe winter weather conditions and mooring infrastructure damage.

Market Outlook

The combination of geopolitical tensions in major oil-producing regions and supply chain disruptions has shifted market sentiment from the previous bearish outlook. The substantial four-day rally demonstrates how quickly oil markets can respond to geopolitical developments, particularly when they involve significant producing nations like Iran and affect critical infrastructure in regions such as the Black Sea.

Oil prices stabilized after achieving their most significant four-day rally in over six months, as global markets focused on escalating tensions surrounding Iran and potential US policy responses. The energy markets are closely monitoring political developments that could significantly impact global oil supply chains.

Current Market Position

The oil market showed mixed signals following the recent surge, with key benchmarks maintaining elevated levels:

West Texas Intermediate traded near $61 per barrel at 8:22 a.m. in Singapore, slipping 0.1% for February delivery. Brent crude for March settlement had closed 2.5% higher at $65.47 per barrel on Tuesday, maintaining its position above the $65 threshold.

Geopolitical Tensions Drive Market Sentiment

The current rally stems from heightened geopolitical concerns centered on Iran, OPEC's fourth-largest producer. President Donald Trump urged Iranians to continue protests against the government of Supreme Leader Ayatollah Ali Khamenei before a scheduled White House meeting, stating he would "act accordingly" once he gets a sense for how many demonstrators have been killed.

Traders are closely monitoring the political unrest in Iran and possible American intervention, which could threaten the country's substantial oil production capacity of approximately 3.3 million barrels per day. Energy Secretary Chris Wright told Fox News that the US would "happily be a commercial partner" to achieve "better price realizations" for Iranian crude if the current regime fell.

Market Dynamics and Supply Concerns

The turmoil in Iran, combined with upheaval in Venezuela, has reinserted a risk premium into oil prices following five consecutive monthly losses driven by oversupply expectations. This shift has caught many market participants off guard, particularly those holding bearish positions.

"The market going in is record short," said Jeff Currie, chief strategy officer of energy pathways at Carlyle Group Inc., in a Bloomberg TV interview. "Demand is not slowing down, it's picking up. And geopolitical risk is at an all-time high — that's a recipe for a spike in prices right now."

Supply Chain Disruptions

Additional supply concerns emerged from multiple global incidents affecting oil infrastructure:

• US Stockpiles: Industry reports indicated US crude stockpiles rose 5.3 million barrels last week, potentially the biggest increase in two months pending official confirmation
• Black Sea Incidents: Two oil tankers were attacked near the loading terminal for the Caspian Pipeline Consortium
• Kazakhstan Exports: Planned shipments from Kazakhstan face complications from the Black Sea attacks, winter weather, and mooring damage

These developments have created a complex supply landscape that continues to influence market sentiment and pricing dynamics across global energy markets.