Oil prices edged lower on Monday after climbing in the previous session, as signs that civil unrest in Iran was easing reduced fears of a U.S. military strike that could disrupt supplies from the key Middle Eastern producer.
Brent crude was trading at $63.85 a barrel at 0734 GMT, down 28 cents, or 0.44%.
U.S. West Texas Intermediate crude for February fell 36 cents, or 0.61%, to $59.08 a barrel. That contract expires on Tuesday, while the more actively traded March contract was down 24 cents, or 0.40%, at $59.10.
Violent protests in Iran, triggered by economic hardship, appear to have been suppressed following a harsh crackdown that officials say resulted in 5,000 deaths.
U.S. President Donald Trump appeared to soften his earlier interventionist stance, posting on social media that Iran had called off mass executions of protesters, although Tehran had not announced any such plans. The comments helped ease concerns that Washington might launch military action that could disrupt oil exports from Iran, the fourth-largest producer in OPEC.
The latest decline marked a renewed pullback from multi-month highs reached last week, even though prices still finished higher on Friday. At the same time, the movement of U.S. military assets toward the Gulf continues to underline lingering geopolitical risks.
“The pullback followed a swift unwind of the ’Iran premium’ that had driven prices to 12-week highs, triggered by signs of easing in Iran’s crackdown on protesters,” IG market analyst Tony Sycamore said in a note.
He added that the move was reinforced by U.S. inventory data showing a sizeable build in crude stocks, which added to bearish supply-side pressure.
U.S. markets are closed on Monday for the Martin Luther King Jr. Day holiday.
Data from the Energy Information Administration released last week showed U.S. crude inventories rose by 3.4 million barrels in the week ended January 9, compared with expectations in a Reuters poll for a 1.7 million-barrel draw.
Traders are also monitoring developments in Venezuela’s oil sector after Trump said the United States would take control of the country’s oil industry following the capture of Nicolas Maduro. The U.S. energy secretary told Reuters on Friday that Washington is moving as quickly as possible to grant Chevron an expanded licence to produce in Venezuela.
However, confidence remains limited around the scope for a rapid increase in Venezuelan output.
“Venezuela and Ukraine remain on the back burner,” said Vandana Hari, founder of oil market analysis firm Vanda Insights.
“Expect rangebound movement for the rest of the day, with U.S. markets closed.”
Separately, Chinese government data released Monday showed refinery throughput in China rose 4.1% year on year in 2025, while crude oil production increased 1.5% from 2024, with both measures reaching record highs.