Oil Tanker Seizures and Dovish Fed Drive Gold Above $4,300 as Geopolitical Risks Mount

Date: 12 Dec 2025 03:08 PM

The United States is preparing to seize additional tankers carrying sanctioned Venezuelan crude oil, with authorities already compiling a target list of vessels, . Following this week’s high-profile seizure of the Panama-flagged tanker Skipper near Venezuelan waters—which initially spiked oil prices—the administration has signaled more aggressive enforcement against roughly 30 sanctioned tankers that use deceptive practices to deliver Venezuela’s oil to global buyers. White House spokeswoman Karoline Leavitt stated the U.S. will not allow “sanctioned vessels [to] sail the seas with black market oil” that funds what she called narcoterrorism and rogue regimes. In parallel, the Treasury Department imposed new sanctions on members of Nicolás Maduro’s family, a key business ally, and six tanker-operating companies, effectively freezing several vessels (including the White Crane and Kiara M) out of the U.S. financial system despite their recent loadings.

Gold surged past $4,300 an ounce on Friday, marking its fourth consecutive day of gains and hitting the highest level since October 21, fueled primarily by renewed bets on a dovish Federal Reserve path after Wednesday’s 25-basis-point rate cut and signals of only one additional easing in 2026. The softer U.S. dollar—languishing near a two-month low—combined with Fed Chair Jerome Powell’s remarks highlighting downside risks to the labor market has kept rate-cut expectations alive for 2025, providing strong tailwinds for the non-yielding metal. Persistent geopolitical tensions, including stalled Russia-Ukraine peace talks and reports of U.S. pressure on Kyiv to make territorial concessions, further bolster safe-haven demand and largely offset the positive global equity mood. With no major U.S. economic data on the calendar, upcoming comments from FOMC members and the broader risk tone will guide near-term momentum as gold remains firmly on track for robust weekly gains.

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