Global oil prices climbed on Tuesday, with Brent crude rising to $64 per barrel as mounting geopolitical tensions and policy uncertainty revived fears over future supply disruptions.
Brent crude gained 0.7 per cent to $64.01 per barrel, up from Monday’s close of $63.55, while the United States benchmark, West Texas Intermediate, rose about 0.8 per cent to $59.83 per barrel from $59.35.
The latest rally was driven largely by renewed concerns over Iran, after reports emerged that United States President Donald Trump had been briefed on options beyond conventional air strikes, including cyber and psychological operations, amid ongoing protests in the country.
Market participants said the briefing heightened perceptions of geopolitical risk, even as officials stressed that no final decision had been taken and diplomatic channels remained open.
White House Press Secretary Karoline Leavitt said Trump’s priority remained diplomacy, although the military option was still under consideration.
Analysts noted that any escalation involving Iran, a key player in the Middle East, could threaten supplies from a region that holds a significant share of global oil reserves.
Uncertainty was further amplified by Trump’s declaration that countries trading with Iran would face a 25 per cent tariff in their trade with the United States, a move he described as “firm and final”. Energy experts warned that such measures could fuel trade tensions, weigh on global economic growth and revive inflationary pressures, adding another layer of risk to oil markets.
Attention has also shifted to Venezuela, where policy signals from Washington have raised doubts about future supply growth. Trump said talks with Caracas were “going very well” following the detention of President Nicolas Maduro, adding that the purchase of 50 million barrels of Venezuelan oil was under discussion and that $4.2 billion worth of oil was already on its way to the United States.
He also expressed dissatisfaction with Exxon’s position on Venezuelan oil projects, saying he was considering excluding the company from future oil tenders in the country. Analysts said these remarks reinforced perceptions of an unpredictable investment climate, which could discourage foreign participation and constrain medium- to long-term production growth.
Beyond supply-side risks, concerns over the independence of the US Federal Reserve also lingered in the background. Former Fed officials warned that reported moves to investigate Fed Chair Jerome Powell could undermine the central bank’s autonomy, a development investors see as negative for broader financial stability.
While the immediate market reaction to the Fed issue has been muted, analysts said the debate is adding to overall uncertainty, offering short-term support to oil prices even as medium-term gains remain capped by concerns over global demand and economic growth.
SOURCE: THE DAILY NEWS PAPER
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