Oil prices stabilize as Iranian protests subside and geopolitical risks ease
Oil prices stabilized on Monday, January 19, as civil unrest in Iran subsided, reducing the likelihood of a US attack that could disrupt oil supplies from one of the Middle East's largest crude producers.
Brent crude futures rose 1 cent, or 0.02%, to $64.14 a barrel.
US West Texas Intermediate (WTI) crude futures for February delivery gained 7 cents, or 0.12%, to $59.43 a barrel.
Trading activity was thin due to a US holiday.
Iran's violent crackdown on protests sparked by an economic crisis has helped calm the unrest, after officials said it resulted in the deaths of nearly 5,000 people.
US President Donald Trump appeared to back down from his earlier threats of intervention after claiming on social media that Iran had called off mass executions of protesters, although no official announcement was made by Tehran.
This seemed to reduce the likelihood of US intervention, which could have disrupted oil flows from OPEC's fourth-largest producer.
"This pullback is a result of the rapid erosion of the Iran-related premium that had pushed prices to 12-week highs, supported by signs of a softening in Iran's crackdown on protesters," said Tony Sycamore, a market analyst at IG, in a note.
"With concerns about Iran easing in the last few days following rumors of a US attack, the market is now focused on the situation in Greenland and the extent of any fallout between the US and Europe, as any escalation of the trade war could impact demand," said Janev Shah, an analyst at Rystad Energy.
Trump intensified his efforts to wrest sovereignty over Greenland from NATO member Denmark, threatening punitive tariffs on countries that stand in his way, prompting the European Union to consider its own countermeasures.
An EU spokesperson said today that the bloc's leaders will meet in Brussels on Thursday for an emergency summit.
Global stocks fell and the dollar weakened against the yen and Swiss franc, both safe-haven assets, today amid concerns about a potential trade war between the United States and Europe.
