Oil Prices Surge to 7-Week High: What This Means for Investors and Businesses Amid Iran Export Concerns
Oil prices rose on Monday, reaching seven-week highs amid concerns that Iran’s oil exports could decline due to the country’s crackdown on anti-government protests. However, gains were restrained by expectations of increased supplies from Venezuela, another OPEC member currently under sanctions.
Brent crude settled at its highest level since November 18, while West Texas Intermediate (WTI) closed at its highest since December 5. Data from Kpler and Vortexa indicates that Iran currently holds a record volume of oil at sea, equivalent to about 50 days of production. This buildup is partly due to reduced purchases from China amid sanctions, as well as Tehran’s efforts to safeguard supplies from potential U.S. strikes.
Venezuela is anticipated to resume oil exports soon following the removal of President Nicolas Maduro. Former President Donald Trump recently stated that the Venezuelan government is expected to transfer up to 50 million barrels of sanctioned oil to the United States. According to four sources familiar with the matter, oil companies are actively securing tankers and preparing operations to transport the crude safely.
Investors remain attentive to potential supply disruptions from Russia, given ongoing Ukrainian attacks on Russian energy infrastructure and the possibility of stricter U.S. sanctions targeting Moscow’s energy sector.
In Azerbaijan, oil exports fell to 23.1 million tonnes in 2025, down from 24.4 million tonnes in 2024, according to the country’s energy ministry. Both Russia and Azerbaijan are members of OPEC+, the coalition of OPEC and allied producers.
Meanwhile, Norway’s government announced plans to submit a policy document to parliament in 2027 regarding the future of its oil and gas sector, including access to new exploration areas. Prime Minister Jonas Gahr Støre emphasized the industry’s importance, stating that it “should be developed, not phased out.”
Goldman Sachs warned in a note that oil prices are likely to decline over the course of this year as new supplies enter the market, potentially resulting in a surplus. Nevertheless, geopolitical tensions involving Russia, Venezuela, and Iran are expected to sustain price volatility.
Special Analysis by Omanet | Navigate Oman’s Market
The recent surge in oil prices amid geopolitical tensions highlights Oman’s strategic opportunity to leverage higher revenues but also underscores risks from regional instability. Smart investors should closely monitor supply fluctuations from Iran, Venezuela, and Russia, as these will drive market volatility, making diversification and risk management critical for long-term gains. Businesses in Oman can capitalize on the demand dynamics by focusing on agile operations and exploring new markets to mitigate global supply chain disruptions.
