Oil prices were broadly steady on Monday as civil unrest in Iran eased, lowering the risk of a potential U.S. military strike that could disrupt supplies from the major oil producer. With geopolitical tensions in the Middle East calming, market attention shifted toward the growing standoff over Greenland.
Brent crude edged up by just one cent to $64.14 a barrel, while West Texas Intermediate (WTI) for February delivery gained 7 cents to $59.51 a barrel. Trading volumes remained light due to a U.S. federal holiday, which kept price movements muted.
Protests in Iran have subsided following a violent crackdown that authorities say resulted in thousands of deaths. At the same time, Donald Trump appeared to step back from earlier intervention threats, easing immediate supply fears.
According to Janiv Shah, an analyst at Rystad Energy, markets have shifted focus away from Iran and toward geopolitical risks tied to Greenland. He noted that any escalation in trade tensions between the United States and Europe could eventually weigh on oil demand if a broader trade war emerges.
Trump has intensified efforts to assert control over Greenland, currently governed by Denmark, threatening tariffs on countries that oppose the move. This has prompted the European Union to consider retaliatory measures. EU leaders are set to meet in Brussels on Thursday for an emergency summit, according to an EU spokesperson.
Broader market sentiment remained cautious. Global equities fell, while the dollar weakened against traditional safe-haven currencies such as the Japanese yen and Swiss franc, reflecting concerns over a potential U.S.–Europe trade conflict.
Additional uncertainty stems from the risk of damage to Russian energy infrastructure and distillate supplies, particularly as colder weather is forecast across North America and Europe. These factors have added to short-term volatility in energy markets, analysts said.
Looking ahead, oil prices may face downward pressure from rising Venezuelan crude shipments to the U.S. Gulf Coast. However, longer-term demand expectations could improve following a new forecast from the International Monetary Fund, which projects stronger global economic growth in 2026.
Phil Flynn, senior analyst at Price Futures Group, said the oil market is likely to remain range-bound as bullish and bearish forces offset each other, resulting in a period of sideways trading.
