Oil prices jumped over one percent on Wednesday. This rise was driven by a decision from US President Donald Trump. Trump imposed a “complete and comprehensive” blockade on all sanctioned oil tankers. These tankers enter and leave Venezuela. The move intensified geopolitical tensions. Concerns about global demand are also increasing.
Brent crude futures rose 87 cents. This is equivalent to 1.5 percent. It reached $59.79 per barrel by 07:30 GMT. US West Texas Intermediate crude increased 85 cents. This was also a 1.5 percent climb. It settled at $56.12 per barrel.
Both crude benchmarks had fallen on Tuesday. They approached their lowest levels in five years. This decline followed progress in Russian-Ukrainian peace talks. Any potential agreement was expected to ease Western sanctions on Moscow. This would likely increase oil supply. This occurred despite weak global demand.
Trump announced the blockade on Tuesday. It targets all sanctioned oil tankers linked to Venezuela. He also stated he now designates Venezuela’s rulers as a foreign terrorist organization.
Conversely, crude oil traders in Asia noted factors supporting today’s price hike. Futures buying resumed after prices dropped below $60 per barrel yesterday. This return to buying was a key factor in today’s price increase.