Crude oil prices edged higher on Sunday as markets assessed the escalating unrest in Iran and its potential impact on global supply. U.S. oil prices increased by 0.56% to $59.45 a barrel, while Brent crude rose 0.52% to $63.67 a barrel.

The price movements reflected growing concerns about the stability of the Iranian regime, a major oil producer. Iran's daily output ranges between 3 million and 4 million barrels. Disruptions to this supply could significantly tighten global oil markets, potentially leading to further price increases.

The ongoing protests, triggered by an economic crisis, have spread across the country, prompting a severe government crackdown. Reports suggest the regime's security forces, critical to maintaining power, are showing signs of strain. The Institute for the Study of War (ISW) indicated that the protests are challenging the ability and willingness of Iranian security forces to maintain order. The government's response included cutting off internet access, hindering the flow of information and raising concerns about the severity of the situation.

The potential for military intervention by the United States, following President Trump's threats to retaliate against any harm to protestors, added another layer of uncertainty to the market. Such intervention could further destabilize the region and disrupt oil supplies.

Looking ahead, the future direction of oil prices will depend heavily on the trajectory of events in Iran. A continued crackdown and further erosion of the regime's authority could lead to more significant supply disruptions and price spikes. Conversely, a stabilization of the situation could ease market concerns and lead to a correction in prices. The market will continue to closely monitor developments in Iran and any potential policy responses from the U.S. and other major powers.