Oil climbs 1% as Trump plans tariff on countries that buy Venezuelan oil, gas

Oil prices gained 1% on Monday as U.S. President Donald Trump said he will impose 25% tariff on countries that buy oil, gas from Venezuela, and on the back of new U.S. sanctions on Iranian exports.

Price gains were however capped by news that OPEC+' will likely proceed with planned May oil output hike, and talks to end the war in Ukraine, which could increase supply of Russian crude to global markets.

Brent crude futures rose 70 cents, or 1%, to $72.86 a barrel by 11:11 a.m. ET (1511 GMT). U.S. West Texas Intermediate crude was up 73 cents, or 1.05%, at $69

"We've got a little bit of a supply shock of Venezuela losing barrels to the world market. So that's definitely a bullish force," said Dennis Kissler, senior vice president of trading at BOK Financial, adding that investors were watching for tighter restrictions on Iran as well.

The U.S. on Thursday issued new sanctions intended to hit Iranian oil exports, including what the State Department said were the first U.S. measures targeting a Chinese "teapot refinery" processing the crude.

Both benchmarks settled higher on Friday and recorded a second consecutive weekly gain. Wall Street also surged on Monday after signs the Trump administration is taking a measured approach on tariffs against its trading partners.