Oil prices rose from their lowest level in nearly half a decade, with the United States blocking sanctioned oil tankers off the coast of Venezuela and Washington preparing new sanctions against Russia if Moscow rejects a peace deal. Brent crude futures rose as much as 2.4% to more than $60 a barrel. US escalation against the Maduro regime President Donald Trump said that Venezuela is “completely surrounded by the largest navy mobilized in the history of South America.” The United States is also considering options, such as targeting the tankers of the so-called “shadow fleet” that regularly carry Russian oil, and the traders who facilitate the transactions, according to people familiar with the matter. These measures are being prepared in anticipation of President Vladimir Putin’s rejection of a proposed deal with Ukraine, which could be announced as soon as this week. This move represents a major escalation, and comes after US forces confiscated an oil tanker off the coast of Venezuela last week. Trump also said he had decided to designate the regime of Venezuelan President Nicolas Maduro as a “foreign terrorist organization.” Also read: Trump prevents sanctioned oil tankers from entering and leaving Venezuela. Venezuela’s oil production has risen since hitting its lowest levels in 2020, but it is still far from the levels it recorded decades ago. Shipments loaded onto tankers for export totaled about 590,000 barrels per day last month, compared with global consumption that exceeded 100 million barrels per day. Most of Venezuela’s crude exports go to China. The length of the crisis may push China to look for alternatives. The quantities of Venezuelan oil stored on tankers across Asia will soften the immediate impact on buyers in China, but any longer-term disruption in exports could push refiners to look for more expensive alternatives. According to the Rapidan Energy Group, about 30% of shipments are at risk if the United States escalates hostilities. Warren Patterson, head of commodity strategy at ING Group, based in Singapore, said: “The oil market has recently dealt with supply risks calmly, given the size of the expected surplus until 2026.” He added: “With prices currently rising by less than 1%, it is clear that the market is not very worried.” Excess supply expectations are putting pressure on annual expectations. Oil is still on track for an annual loss on expectations of a supply glut after the OPEC+ alliance raised production at a rapid pace, in addition to raising output from other producers, with weak demand. Indicators of weakness are showing in markets from the United States to the Middle East, at a time when investors are preparing for a surplus that the International Energy Agency expects to be the largest since the Corona pandemic. At the same time, traders are evaluating the prospects for a peace deal in Ukraine, which could pave the way for an easing of restrictions on Russian oil exports. (Prices have been updated to reflect market movements)