Oil prices stabilized after recent gains as investors balanced the risk of supply disruptions from Iran's escalating protests against the potential return of Venezuelan oil to the market. Brent Oil Futures dipped to $63.16 per barrel, while West Texas Intermediate (WTI) crude futures slipped to $58.87 per barrel after a strong week of gains. Iran, a key OPEC member, has seen widespread anti-government protests, leading to over 500 deaths according to rights groups.

These unrests have heightened fears of regional confrontation and potential disruptions in the Strait of Hormuz, a vital chokepoint for global oil supplies. U.S. President Donald Trump has taken a hard line on Iran, promising intervention if the protests continue. Meanwhile, the prospect of additional Venezuelan oil has capped gains. U.S. Treasury Secretary Scott Bessent indicated that sanctions against Venezuela could be lifted soon, allowing for up to 50 million barrels of oil to reach the U.S. market. However, oil majors like ExxonMobil remain cautious, describing Venezuela as 'uninvestable' without significant reforms.

Investors are also watching Russia, where Ukraine’s attacks on energy facilities and potential U.S. sanctions add to supply uncertainty. Looking ahead, Goldman Sachs predicts that oil prices will drift lower in 2026 as a supply surplus is expected to create a market imbalance. Despite this, geopolitical risks from Russia, Venezuela, and Iran will continue to drive volatility in the oil market.