Oil prices drop as Iran tensions ease, markets falter
Oil prices fell as tensions over Iran eased and global markets adopted a risk-off tone, partly influenced by US President Donald Trump’s push to take control of Greenland.
Brent crude (BZ=F) slipped below $64 a barrel, while West Texas Intermediate (CL=F) hovered near $59, News.Az reports, citing Bloomberg.
Although risks from Iran did not escalate over the weekend, Supreme Leader Ayatollah Khamenei reported that several thousand people died in this month’s anti-government protests. Earlier, traders had been concerned about potential supply disruptions from the OPEC member.
Meanwhile, Trump’s Greenland plans—including threats of tariffs on certain European nations—weighed on sentiment. Treasury Secretary Scott Bessent told NBC that direct US control of the territory would enhance deterrence. In broader markets, stocks declined while gold reached a record high.
Crude has faced pressure recently due to concerns that supply is outpacing demand, with the International Energy Agency forecasting a surplus of 3.8 million barrels per day in 2026. However, some supply constraints persist, such as reduced shipments from Kazakhstan caused by Black Sea issues. Brent timespreads have also strengthened.
A sharp deterioration on the ground in Iran would risk pushing prices above $70, although the near-term focus has switched to Greenland from Tehran, which has been exerting bearish pressure on prices, Rennie added.
At least one US aircraft carrier had been moving to the Middle East, as of Friday, according to Fox News, citing military sources. Trump — who indicated last week that he would hold off on attacking Iran — is due to address the World Economic Forum in Davos, Switzerland, later this week.
Also in the coming days, the Paris-based IEA is due to issue its first monthly market snapshot of 2026 on Wednesday, having consistently flagged prospects for a glut this year after supply hikes from OPEC+, as well as drillers outside the alliance.
On Monday, volumes may be lower than usual due to a holiday in the US.
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