Oil Prices Climb on U.S. Interception of Venezuelan Tanker, Geopolitical Risks

Oil prices rose on Monday after U.S. officials said an oil tanker had been intercepted in international waters off the coast of Venezuela, stoking fears of supply disruptions. Brent crude futures climbed 52 cents, or 0.86%, to $60.99 a barrel, while West Texas Intermediate gained 50 cents, or 0.88%, to $57.02 by 0918 GMT. Analysts said the move reflects growing concern over Washington’s tougher stance on Venezuelan oil flows, which account for roughly 1% of global supply.

Market sentiment was bolstered by signs the Trump administration is tightening enforcement against sanctioned Venezuelan crude. “The market is waking up to the fact that the U.S. is taking a hardline approach to Venezuelan oil trade,” said June Goh of Sparta Commodities, noting that geopolitical developments have offset otherwise bearish fundamentals. U.S. officials said the Coast Guard is pursuing another tanker near Venezuela, which would mark the third such operation in less than two weeks.

Further support came from broader geopolitical tensions, including the Russia–Ukraine conflict. Analysts pointed to reports of a Ukrainian drone strike on a Russian “shadow fleet” vessel in the Mediterranean, alongside President Donald Trump’s announcement of a “total and complete” blockade of sanctioned Venezuelan oil tankers. Despite last week’s roughly 1% decline in both benchmarks, traders remain alert to supply risks as diplomatic efforts to end the war in Ukraine show limited progress, keeping a risk premium in oil markets.

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