Oil Prices Hold Steady on Jan 12, Amid Geopolitical Tension in Iran and Venezuela Supply Hopes

Crude oil prices traded steadily in early Asian markets as traders assessed opposing market forces. Rising political instability in Iran has increased concerns over possible supply disruptions in a critical oil-producing region. 

At the same time, indications that the United States may ease restrictions on Venezuela’s oil sector have raised expectations of additional supply entering global markets.

Market Performance in Early Trading

Brent crude futures for March delivery edged slightly higher to $63.39 per barrel, while West Texas Intermediate crude rose to $59.15 per barrel. 

Both benchmarks posted modest gains after recording weekly advances of more than three per cent, driven largely by geopolitical considerations.

Iran Protests Raise Supply Concerns

Attention remains on Iran, where widespread anti-government demonstrations have intensified. Reports from rights organisations indicate significant casualties, heightening international concern. 

Iranian authorities have warned that United States military assets in the region could be targeted if external intervention occurs. 

These statements have contributed to market unease over potential disruption to shipping routes, particularly the Strait of Hormuz, a key passage for global oil transport, as per news reports.

Venezuela Developments Limit Price Gains

Counterbalancing these concerns are developments in Venezuela. US officials have signalled that restrictions on Venezuela’s oil industry could be relaxed in the near term.

The US Treasury Secretary indicated that sanctions relief may be introduced to enable oil sales, raising the possibility of additional barrels returning to international markets.

Expectations of increased Venezuelan output have moderated upward price momentum, offsetting some of the risk premium linked to Middle Eastern tensions.

Read More: MOIL Share Price Jump 5% After Best-Ever Q3 and 9-Month Production in FY26.

Conclusion

Oil markets remain influenced by competing geopolitical and policy-driven factors. While unrest in Iran continues to pose potential supply risks, prospects of renewed Venezuelan exports offer a balancing effect. Traders are likely to remain cautious as these developments unfold and clarity emerges on future supply conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.