Iranian protesters attacked police stations late into the night Monday, news agency and social media reports reported, as security forces struggled to contain the boldest challenge to the clerical leadership since unrest in 2009.
However, even without the ongoing unrest in Iran — which is a major oil exporter — market sentiment was already relatively upbeat.
William Dinning, head of investment strategy at Waverton Investment Management, told CNBC on Tuesday that the energy markets' outlook was "broadly very supportive."
"There doesn't seem to be any great political risk premium in the oil price at the moment and again we think that might be supportive," he added.
Goldman Sachs and Morgan Stanley both raised their respective oil price forecasts in the latter months of 2017, citing a stronger-than-anticipated OPEC-led commitment to extend production cuts. The cuts, which started in January 2017, are poised to continue through all of 2018 as the allied oil producers seek to clear a global supply overhang.
Meanwhile, U.S. commercial crude inventories have slipped nearly 20 percent from the highs recorded in March last year.