Oil prices were largely steady on Monday after civil unrest in Iran subsided, easing fears of a potential U.S. military strike that could disrupt supplies from one of the world’s major oil producers.
Brent crude slipped 32 cents to $63.81 a barrel, while U.S. West Texas Intermediate for February fell 26 cents to $59.18 by mid-afternoon trading, with markets showing calmer price movements compared to last week.
Analysts said the pullback in geopolitical risk around Iran, following a violent crackdown on protests and softer rhetoric from U.S. President Donald Trump, reduced immediate supply concerns.
With Iran-related fears fading, attention has shifted to a growing political standoff over Greenland, where Trump has threatened tariffs on European imports unless the United States is allowed to acquire the Danish territory.
European Union leaders are due to meet in Brussels later this week for an emergency summit, raising concerns that an expanded trade dispute between the U.S. and Europe could weigh on global oil demand.
Market participants are also monitoring risks to Russian energy infrastructure and distillate supplies, particularly as colder weather is forecast across North America and Europe.
Adding to supply uncertainty, Kazakhstan’s Tengizchevroil oil venture, led by Chevron, said it temporarily halted output at two major oilfields due to power distribution problems.
U.S. oil markets were closed on Monday for the Martin Luther King Jr. Day holiday, contributing to lighter trading volumes.