By Alex Kozul-Wright
Oil benchmarks were rising Wednesday after Trump administration officials said the U.S. is considering seizing additional tankers involved in transporting Iranian oil.
Brent crude futures were up 1.5% to $69.8 a barrel early Wednesday, while West Texas Intermediate futures rallied 1.6% to $65.
As part of a continuing blockade on Venezuela, the U.S. has already seized several 'shadow tankers' carrying illicit Iranian oil to buyers such as China.
Looking ahead, enhanced U.S. efforts to stop more sanctioned vessels from loading Iranian oil would further squeeze Tehran's main revenue source.
The White House is considering expanding its tough enforcement regime on global shadow fleets, including Iran's, The Wall Street Journal reported.
"Trump administration officials had considered whether to seize tankers transporting Iranian oil, but have held off because of concerns about retaliation and the oil market impact," says Deutsche Bank strategist Henry Allen.
"So oil prices moved higher after those headlines, and this morning Brent crude is currently around a 1-week high of $69.17/bbl.," he added.
The latest move follows recent talks between U.S. and Iranian officials over Tehran's nuclear program.
Iran's foreign minister Abbas Araghchi said talks last Friday 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 U.S. advisory Monday warning ships transiting the Strait of Hormuz -- a key chokepoint for global oil supplies.
Looking ahead, investors will switch their focus to OPEC's monthly market outlook, out Wednesday. On Thursday, the International Energy Agency will issue its own report.
Traders will be watching out for signs that supply may outstrip demand in 2026 and create a surplus.
Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com
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February 11, 2026 05:50 ET (10:50 GMT)
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