Crude Rises Amid Threat of U.S. Seizing Iran Oil Tankers

Energy prices were in focus again late this week amid geopolitical tensions.

The White House has discussed seizing additional tankers transporting Iranian oil but has held off due to concerns about retaliation by Tehran and the potential disruption to crude markets.

Oil benchmarks were rising after The Wall Street Journal reported the Trump administration has discussed seizing additional tankers involved in transporting illicit Iranian oil, Alex Kozul-Wright reported for Barron’s Daily.

As part of a continuing blockade on Venezuela, the US has already seized several “shadow tankers” carrying Iranian oil to buyers such as China.

Enhanced efforts to stop more sanctioned vessels from loading Iranian oil would further squeeze Tehran’s main revenue source.

The White House has discussed seizing additional tankers transporting Iranian oil but has held off due to concerns about retaliation by Tehran and the potential disruption to crude markets, the Wall Street Journal reported, citing US officials.

The latest move follows recent talks between American and Iranian officials over Tehran’s nuclear program. Iran’s Foreign Minister Abbas Araghchi said on Friday that talks were a “very good start,” the country’s IRNA news agency reported.

While both sides reported some progress in the negotiations, the discussions were overshadowed by a US advisory Monday warning ships from transiting the Strait of Hormuz—a key chokepoint for global oil supplies.