The protests spreading across Iran pose no immediate threat to the nation's oil exports, analysts said. However, the unrest could cause the Trump administration to take an even tougher stance against Iran, increasing the odds of a major supply disruption.
Iran has restored its oil production to nearly 4 million barrels a day since a historic 2015 deal with six world powers that lifted crippling sanctions on the country. A major disruption in Iran could send crude prices sharply higher just as the oil market is emerging from a prolonged period of oversupply.
Demonstrations began last week in Mashhad, Iran's second largest city, and have spread to several urban and provincial areas, including the capital Tehran. Dissatisfaction with Iran's sluggish economy emerged as a unifying grievance, but protesters have also spoken out against Iran's leadership and its financial support for foreign groups.