Oil prices climbed on Tuesday as heightened worries about potential supply disruptions in Iran and broader Middle Eastern tensions outweighed signs of increased crude output prospects from Venezuela, according to market sources. Brent crude futures rose about 1.7%, extending recent gains as traders priced in a risk premium tied to unrest in key producer regions and uncertainty over export flows.

Crude markets have been sensitive to mixed signals in recent sessions, with some data suggesting a potential uptick in Venezuelan exports while unrest in Iran has kept risk sentiment buoyant. Reporters have highlighted how traders are balancing fundamentals against supply worries that could skew short-term pricing.

Risk-related price dynamics have also been reflected in wider energy equities and related derivatives, with energy sector stocks showing relative strength amid elevated oil benchmarks. This has contributed to broader equity market moves, particularly in regions sensitive to energy pricing.

While global demand forecasts remain mixed, underlying supply concerns tied to political events continue to shape trader behaviour and inventory strategies. Refinery margins and shipping costs are being factored into decisions as markets seek clarity on flows early in 2026.

Market watchers say that oil will likely remain reactive to geopolitical headlines in the near term, with traders awaiting clearer signals from producer dialogue and regional developments.

Source: Reuters