Oil prices have risen to their highest levels in seven weeks, fueled by concerns that political instability in Iran could significantly reduce the country's oil exports. Brent crude futures rose by 0.8% to settle at $63.87 a barrel, while U.S. West Texas Intermediate (WTI) crude increased by 0.6% to $59.50.

The price surge reflects growing anxiety about potential disruptions to Iran's oil supply. Iran, a member of OPEC, is currently grappling with anti-government demonstrations, leading to fears that the government may crack down on exports to maintain control. This comes as Iran reportedly holds a significant amount of oil in storage, equivalent to roughly 50 days of output, according to data from Kpler and Vortexa.

Adding to the complex geopolitical picture is the situation in Venezuela. The potential for increased oil supply from Venezuela, following recent political changes, is expected to temper further price increases. Trump stated last week that the government in Caracas was set to hand over as much as 50 million barrels of sanctioned oil to the U.S.

While the market is focused on Iran's internal struggles, the nation's leadership has indicated a willingness to maintain communication channels with the United States. Trump has also suggested the possibility of a meeting with Iranian officials. However, he has simultaneously threatened potential military action in response to the violence against protesters.

The developments highlight the sensitivity of oil prices to geopolitical instability and supply disruptions. Market analysts are closely watching the situation in both Iran and Venezuela, as any significant changes in either country's oil production or exports could have a notable impact on global energy markets and, consequently, on economies like Nigeria that are heavily reliant on oil revenue.