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Oil prices posted their longest run of weekly gains since June, underpinned by heightened geopolitical tensions in the Middle East and Eastern Europe that revived supply-side risk premiums.

Brent settled $1.35, or 2.18%, higher at $63.34/barrel.

WTI rose $1.36, or 2.35%, to $59.12/barrel. For the week, Brent advanced around 4%, while WTI gained about 3%.

Market sentiment was buoyed by escalating unrest in Iran, where authorities intensified a crackdown on nationwide protests while Tehran warned that “rioters” who damage public property or clash with security forces could face the death penalty. President Donald Trump said Iran’s leadership would “pay hell” if demonstrators were killed, that caused jitters that political instability could disrupt Iranian oil output.

OPEC production data also reinforced supply-side unease. The group pumped 28.4 million bpd last month, down 100,000 bpd from November’s revised level, according to a survey. Iran and Venezuela recorded the largest output declines.

Additional support came from rising tensions linked to the Russia-Ukraine war. Russia’s military said it had fired its hypersonic Oreshnik missile at targets in Ukraine, including energy infrastructure supporting the country’s military-industrial complex, fuelling fears of further disruptions to regional energy flows.

Despite the recent rally, analysts cautioned that the upside may be limited. Global oil inventories continue to rise, and persistent oversupply remains a key headwind. Unless geopolitical risks, particularly around Iran, escalate materially, the rebound is likely to prove fragile and difficult to sustain.

Written by: Farid Muzaffar