Brent crude futures rose 46 cents, or 0.8%, to $60.93 per barrel by 0400 GMT on Monday, while U.S. West Texas Intermediate (WTI) gained the same amount to $56.98 per barrel. The move followed reports that U.S. authorities had intercepted an oil tanker in international waters near Venezuela, highlighting Washington’s tougher stance on sanctioned oil flows.
Market participants are increasingly factoring in the risk that U.S. enforcement actions could further constrain Venezuelan exports. Analysts said the latest incident underscores a broader hardline approach by the Trump administration toward illicit or sanctioned oil trade involving Caracas.
Support for prices has also come from lingering geopolitical tensions beyond Latin America. Ongoing uncertainty surrounding the Russia–Ukraine conflict continues to cast a shadow over energy markets, particularly after recent reports of a Ukrainian drone strike on a vessel linked to Russia’s so-called shadow fleet in the Mediterranean.
“The market is waking up to the fact that the U.S. is prepared to act decisively on Venezuelan oil,” said June Goh, senior oil market analyst at Sparta Commodities. She added that geopolitical risks are helping prop up prices in a market that otherwise remains fundamentally bearish due to oversupply concerns.
According to U.S. officials, the Coast Guard is pursuing the tanker near Venezuela in what would mark the second such operation over the weekend and potentially the third within two weeks. The White House has yet to comment publicly on the incident.
Analysts noted that the recent rebound in oil prices began after President Donald Trump announced a “total and complete” blockade of sanctioned Venezuelan oil tankers, a move that heightened fears of supply disruptions. That momentum was reinforced by developments linked to the Russia–Ukraine war, as hopes for a near-term diplomatic breakthrough have faded.
“The market is losing confidence that U.S.-brokered peace talks will deliver a lasting agreement anytime soon,” said IG analyst Tony Sycamore. He noted that geopolitical tensions are helping counterbalance oversupply worries and a technical “false break” lower in prices last week that left parts of the market positioned on the wrong side.
Despite Monday’s gains, oil prices remain under pressure on a broader view. Brent and WTI both fell about 1% last week, following a sharper decline of roughly 4% in the previous week.
Diplomatic signals over the weekend were mixed. U.S. special envoy Steve Witkoff said discussions in Florida involving U.S., European and Ukrainian officials had been productive and focused on aligning positions to end the war in Ukraine. However, a senior aide to Russian President Vladimir Putin said changes proposed by Europe and Ukraine had not improved the prospects for peace, dampening optimism for a swift resolution.
For now, traders appear caught between ample supply and persistent geopolitical flashpoints, leaving oil prices sensitive to further developments on both fronts.