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 by 0.52% to $63.67 a barrel.

The price movements reflected growing concerns about the stability of the Iranian regime, a significant oil producer pumping 3 million to 4 million barrels per day. Reports indicated that President Trump was considering military options in response to the government's crackdown on protestors, further fueling market anxieties.

The Iranian government's response to widespread protests, triggered by an ongoing economic crisis, included internet shutdowns and a forceful suppression of dissent. Human rights groups estimated that hundreds had died in the government's crackdown. Analysts at the Institute for the Study of War (ISW) suggested that the security apparatus, crucial for maintaining the leadership's power, was showing signs of strain. Reports indicated that the ongoing protests were challenging the ability and willingness of Iranian security forces.

The potential disruption to Iranian oil production carries significant implications for the global energy market. Any substantial reduction in Iranian output could tighten supply and push prices higher, impacting consumers and businesses worldwide. The situation adds another layer of complexity to an already volatile market, influenced by factors such as OPEC production policies, U.S. shale output, and global economic growth.

Looking ahead, the trajectory of oil prices will largely depend on the evolving political situation in Iran and the international response. Further escalation of the conflict or significant disruptions to oil production could lead to a sharp increase in prices. Conversely, a de-escalation of tensions or a resolution to the political crisis could ease market concerns and stabilize prices. The market will likely remain highly sensitive to developments in Iran in the coming days and weeks.