FX.co ★ Oil Rises by Around 3%

WTI crude oil experienced a notable surge of nearly 3% on Friday, reaching $59.40 per barrel—the most significant increase since October. This rise was fueled by escalating geopolitical tensions that led traders to anticipate potential supply disruptions. The intensifying civil unrest in Iran and President Trump's warnings of repercussions should protesters be harmed underscored the risk that instability in a key oil-producing nation could impede exports or disrupt shipping routes. This situation shifted market focus away from previous downward pressures on prices, illustrating how quickly uncertainties regarding Middle Eastern oil supply can elevate prices. The protests in Iran have interfered with transportation and sparked concerns about the nation's output, which exceeds 3 million barrels per day. Concurrently, tensions in Venezuela have diminished following President Trump's decision to cancel planned military actions in light of improved diplomatic cooperation. Despite setting the stage for a third consecutive weekly increase, oil prices could face limitations in the months ahead due to an anticipated global surplus this year.