Oil prices saw a notable recovery from two-month lows on Tuesday, driven by geopolitical tensions after  U.S.  President Donald Trump revoked Chevron’s authorization to operate in Venezuela. The decision, which came as a surprise to many, has raised concerns about potential disruptions in global oil supply, particularly from Venezuela, a key OPEC member.

Brent crude futures rose by 1.5% to 78.50 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed 1.3% to 73.80 per barrel. Analysts suggest that the move could tighten global oil markets, especially as Venezuela’s oil exports have already been constrained by U.S. sanctions and internal economic challenges.

The revocation of Chevron’s license is seen as a strategic move to increase pressure on Venezuela’s government, which has been accused of human rights violations and undemocratic practices. However, the decision has also sparked fears of further instability in the oil market, which is already grappling with fluctuating demand and supply chain uncertainties.

Market watchers are now closely monitoring how OPEC+ will respond to the potential supply crunch, as well as the broader implications for global energy security.