Oil prices rose early on Friday as protests in Iran continued to escalate, unnerving market participants that one of the biggest oil producers in the Middle East could see supply threatened.
Both the WTI and Brent benchmarks traded about 0.7% higher as of 8:05 a.m. ET, as the market assessed potential risks to supply from the ongoing unrest in Iran.
The U.S. benchmark crude futures, WTI, were up by 0.74% to trade at $58.16 per barrel, while the international benchmark, Brent, was up above the $62 per barrel mark, at $62.42, up by 0.71%.
Oil prices had jumped by more than 3% on Thursday amid heightened geopolitical risk, from Venezuela to Iran.
On Friday, oil was supported by escalating protests in Iran and President Donald Trump’s comments late on Thursday that Iran’s leader, Ayatollah Ali Khamenei, was planning on fleeing the country following the protests in the OPEC producer demanding a change in regime.
The Ayatollah is “looking to go someplace”, President Trump told reporters who asked for comment on reports that the Iranian leader could escape to Russia.
On Friday, Iran cut off Internet, as the regime frequently does amid protests in the autocratic country.
The protests that began nearly two weeks ago have left about 40 people dead and 2,000 have been detained as Iranian forces are trying to suppress the widespread protests.
The Ayatollah on Friday slammed the protests and protesters, accusing them of being “vandals” acting on behalf of President Trump.
In a televised address and amid the Internet blackout, Khamenei vowed that the Islamic Republic would “not back down” to protesters and Trump.
Following the escalating protests, crude oil prices traded higher for a second straight day on Friday.
The market focus is now on Iran, “where the risk of near-term supply disruptions is outweighing the prospect of a future supply pickup should the regime collapse,” Ole Hansen, Head of Commodity Strategy at Saxo Bank, said on Friday.
By Charles Kennedy for Oilprice.com
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