Oil prices jumped on Thursday as markets reacted to rising political tension and fresh worries about global supply.
Reports say the United States is ready to impose new sanctions on Russia’s energy sector if Moscow does not reach a peace deal with Ukraine. At the same time, concerns are growing over oil supplies after the U.S. blocked Venezuelan oil tankers. Together, these moves made traders nervous about how much oil will be available.
U.S. oil prices moved higher early in the day. West Texas Intermediate crude rose by 44 cents, or nearly 0.8%, reaching $56.38 a barrel by early morning GMT. Prices had climbed by more than a dollar earlier in the session before pulling back slightly.
Brent crude also gained ground. It rose 42 cents, or about 0.7%, to $60.10 a barrel, as investors weighed how these geopolitical developments could disrupt global oil supplies.
In short, fears of tighter supply — driven by sanctions and shipping restrictions — pushed oil prices higher.
