Oil prices edge up, Iran tensions ease

January 19, 2026 (MLN): Oil markets inched higher on Monday, following gains from the previous session, as violence in Iran subsided, reducing concerns over a potential U.S. strike on one of OPEC’s largest producers.

The calming of unrest in Iran eased fears of disruptions to global oil supplies.

Brent crude futures rose by $0.77, or 1.20%, to settle at $63.36 per barrel, according to Mettis Global data.

Meanwhile, West Texas Intermediate (WTI) futures advanced $0.67, or 1.13%, to reach $58.77 per barrel by 2:50 pm PST.

Iran’s recent crackdown on protests, sparked by economic hardship and reportedly resulting in thousands of deaths, has largely quelled civil unrest.

This reduced the likelihood of immediate U.S. intervention, which had previously posed a risk to oil flows from the Middle Eastern producer.

The shift in risk perception followed statements from U.S. leadership suggesting de-escalation in Iran, calming markets and prompting a partial unwind of speculative pressure on crude prices, according to CNBC. 

Market participants also reacted to U.S. crude stock data, which revealed a significant inventory build of 3.4m barrels in the week ending January 9 well above expectations. This increase reinforced near-term supply pressures and tempered further price spikes.

Globally, traders are closely monitoring Venezuelan oil production, where the U.S. is moving to expand operations in the country’s underutilized fields. While this could support medium-term supply, immediate output gains remain uncertain.

In Asia, China’s refinery throughput and crude output both hit record levels in 2025, showing strong demand and supporting global consumption fundamentals.

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