Oil Jumps more Than 3% as Venezuela Returns to Focus, Supply Fears Intensify

Oil prices surged more than 3% on Thursday, snapping a two-day losing streak, as Venezuela moved back into the spotlight and fresh concerns emerged over supply disruptions from Russia, Iraq, and Iran.

Brent crude climbed around 3.4% to settle near $62 a barrel, marking its highest close since December 24, while US West Texas Intermediate rose roughly 3.2% to about $58 a barrel. The rally pushed prices back toward levels seen before recent political and military developments in Latin America rattled markets.

Latest Oil Prices:

WTI Crude • 58.26 +0.87%

Brent Crude • 61.99 +3.39%

Murban Crude • 62.32 +4.09%

Louisiana Light • 58.42 +0.00%

Bonny Light • 78.62 -2.84%

Mars US • 70.06  -1.30%

Gasoline • 1.778 +0.99%

The strength was not limited to crude. Prices of refined products, including gasoline and gasoil, also advanced, signaling broader anxiety across energy supply chains rather than a short-term speculative move.

The initial catalyst came from Venezuela, where sources said foreign diplomatic missions have begun arranging potential visits involving representatives from US and European oil companies. The discussions follow Washington’s announcement of a $2 billion oil-related deal and shipments of US goods to the South American nation, according to Reuters.

At the same time, the United States intensified pressure by seizing two oil tankers linked to Venezuela in the Atlantic Ocean, one of them flying a Russian flag, underscoring a tougher stance adopted by President Donald Trump as he seeks to reshape oil flows across the Western Hemisphere.

Despite the geopolitical escalation, analysts caution that Venezuelan crude is unlikely to have an immediate impact on the US market. Any meaningful volumes reaching the US Gulf Coast could take years to materialize, helping explain why the market reaction, while sharp, remained contained relative to the political significance of the developments, Reuters reported.

Concerns extended well beyond Venezuela. In the Black Sea, an oil tanker bound for Russia was attacked by a drone, forcing it to change course and seek assistance from Turkish coast guards, an incident that reignited fears over shipping security in a region critical to global energy flows.

On the political front, signals have emerged pointing to potential tightening of sanctions on countries trading with Russia, the world’s second-largest oil producer after the United States, adding another layer of uncertainty to supply expectations.

In Iraq, the cabinet approved plans to nationalize operations at the West Qurna-2 oilfield, one of the largest in the world, in an effort to avert disruptions linked to US sanctions on Russia’s Lukoil, the field’s main partner.

Iran has also re-entered the risk equation amid rising domestic protests tied to economic reforms and official warnings against hoarding and price hikes. While Iran accounts for roughly 2% of global oil supply, any abrupt decline in its exports could have a noticeable impact on markets already on edge.