Oil prices found early support on Monday as a renewed uptick in geopolitical risk helped rebuild a modest risk premium in crude markets. Over the weekend, the United States intercepted a Venezuelan oil tanker, underscoring Washington’s willingness to more actively enforce sanctions and adding to concerns around potential supply disruptions from the region. While the immediate impact on global supply remains limited, the episode served as a reminder of lingering geopolitical fault lines in key energy-producing areas.
At the same time, tensions in the Middle East remained elevated, with the standoff between Israel and Iran continuing to simmer. Although no fresh escalation was reported, the persistence of regional uncertainty has been enough to keep traders cautious, particularly given the strategic importance of Middle Eastern supply routes and infrastructure.
Together, these developments helped stabilise prices after recent declines, with markets modestly rebuilding a geopolitical risk premium. Gains have extended somewhat as the week has progressed
