London: Oil prices remained firm on Monday after rising sharply in the previous session, as investors stayed alert to growing tensions between the United States and Iran and their possible impact on global supply.
Brent crude traded close to 66 dollars a barrel, while U.S. West Texas Intermediate hovered near 61 dollars. Prices had jumped more than two percent on Friday after renewed concerns that conflict in the Middle East could disrupt oil flows.
Market attention has focused on relations between Washington and Tehran after the United States moved military assets closer to the region. Iranian officials warned that any attack would be met with strong retaliation, raising fears of instability in one of the world’s most important oil producing areas.
Weather conditions in the United States also supported prices. Severe winter storms temporarily reduced oil production by about 250,000 barrels per day, tightening supply in the short term.
However, some supply pressures have eased. Kazakhstan’s main oil export pipeline has returned to full capacity, helping restore shipments that were recently disrupted.
Looking ahead, traders remain cautious about the broader outlook. The International Energy Agency has warned that the global oil market could face a surplus in the first quarter of 2026 if producers do not limit output. Strong production from non OPEC countries, especially the United States, continues to weigh on long term prices.
At the same time, Saudi Aramco’s chief executive said fears of an oil glut may be exaggerated, pointing to steady demand and relatively low inventories compared with past years.
For now, oil markets are balancing between geopolitical risks that push prices up and expectations of ample supply that cap further gains. Investors are closely watching developments in U.S. Iran relations, weather impacts on production and any signals from major producers about future output plans.