Oil prices have surged due to escalating unrest in Iran, with BCA Research warning of a potential supply shock. Brent crude climbed 1.9% to $65.08 a barrel, nearing a two-month high, while U.S. West Texas Intermediate crude gained 2.4% to $60.74. The unrest in Iran, a key OPEC producer, has intensified, surpassing previous protest waves. BCA Research attributes the escalation to the regime's loss of credibility and the opposition's opportunity to influence the upcoming leadership succession.

This political turmoil has led to heightened tensions between the U.S. and Iran, with both sides issuing military threats. Iran has historically suppressed protests violently, but recent U.S. warnings have complicated its response. As a result, the risk of a global oil supply shock has increased to 40%, according to BCA Research.

This uncertainty is pushing oil prices higher, with traders anticipating potential supply disruptions. The situation remains fluid, and any further escalation could drive prices even higher, impacting global markets and economies reliant on stable oil supplies.