(Investing)– Oil prices rose in early European trade on Monday after reports said the U.S. was pursuing a third Venezuelan oil tanker after seizing another tanker over the weekend.
A potential resurgence in tensions between Israel and Iran also provided some risk premium, after reports said Israel was planning to brief the U.S. over attacking Iran, amid concerns over Tehran’s nuclear efforts.
for February rose 0.9% to $61.04 a barrel, while rose 1% to $57.05 a barrel by 05:00 ET (10:00 GMT).
Monday’s gains come after oil prices logged two straight weeks of losses on concerns over a 2026 supply glut. The prospect of Russian supply returning to markets, amid peace talks over the Ukraine war, also weighed on crude.
But this was offset by the prospect of more U.S.-driven supply disruptions for Venezuela.
U.S. seen intercepting third Venezuelan tanker after weekend seizure
A host of reports on Sunday evening and Monday morning said the U.S. was pursuing another Venezuelan oil tanker, its third such operation in less than two weeks.
This comes just shortly after Washington seized a second tanker over the weekend.
President Donald Trump’s administration harshened its rhetoric against Venezuela in recent weeks, accusing the country of funding the flow of illegal drugs and criminals onto U.S. soil.
Trump had last week announced a blockade of all sanctioned oil tankers entering and leaving Venezuela.
A U.S. crackdown stands to disrupt oil flows from Venezuela, which could herald some disruptions in global oil supplies.
Venezuela has the largest proven oil reserves in the world, and is the twelfth-largest producer of crude, according to data from statistics website Worldometer.
Israel-Iran reescalation eyed
Concerns over renewed geopolitical tensions in the Middle East also buoyed oil, after weekend reports said Israel was planning to brief the U.S. over a new offensive against Iran.
Israeli Prime Minister Benjamin Netanyahu is set to meet Trump later in December, and is expected to push for more action against Iran on concerns over Tehran’s ballistic missiles and nuclear program.
Renewed tensions in the Middle East could disrupt some oil production in the region, although it remained unclear whether plans for more action against Iran will proceed.
(Ambar Warrick contributed to this report.)
