Oil prices dropped during Friday’s Asian trading after the United States seized another Venezuela-linked oil tanker and gave conflicting messages on a potential intervention in Iran’s anti-government protests.
Brent crude prices were down 0.3% to US$63.58 per barrel by 2:40 pm AEDT (3:40 am GMT). West Texas Intermediate dropped 0.2% to $59.05 .
The U.S. seized a sixth oil tanker in the Caribbean Sea as part of its blockade of oil vessels entering and exiting Venezuela. The Guyana-flagged tanker Veronica last departed Venezuela while empty in early January.
A tanker with the Veronica’s registration number was previously sanctioned by the U.S. for transporting illicit Russian oil. Sanctioned exporters represent around 20% of global seaborne crude supply, per a Vortexa report.
The seizure comes as the U.S. attempts to market up to 50 million barrels of oil sent from Venezuela. U.S. officials said yesterday they had completed their first sale, worth around US$500 million.
While U.S. President Donald Trump has threatened military strikes against Iran’s government if it continues to kill protesters, he claimed yesterday that executions and killings had now stopped.
“We went from a high likelihood that Trump was going to hit Iran to a low likelihood, and that is the bulk of the downward pressure today on prices,” said Price Futures Group senior analyst Phil Flynn.
White House Press Secretary Karoline Leavitt said “all options remain on the table” for potential U.S. strikes on Iran to support protesters. The U.S. military has reportedly removed some personnel from bases in the Middle East, as Iran has threatened to retaliate if the U.S. launches airstrikes.
At least 2,677 people have been killed in 19 days of protests against Iran’s government, including 2,478 protesters, according to the Human Rights Activists News Agency.
