Oil prices rose following reports that the United States plans to attack military targets in Venezuela, an OPEC member.

West Texas Intermediate crude climbed as much as 1.3%, reversing an earlier decline. According to the Wall Street Journal and the Miami Herald, citing U.S. officials and sources familiar with the matter, the Trump administration has identified targets in Venezuela, including military installations used for drug smuggling.

A potential military escalation would affect major economies, from China and India to Western Europe, and could complicate operations at US Gulf refineries that rely on Venezuelan heavy crude for their production lines.

Reports about the Trump administration's plans in Venezuela emerge as traders continue to assess the potential impact of US sanctions on Russia's two largest oil producers—a risk that, according to the head of Europe's largest refiner, the market is underestimating. Processors that account for more than half of India's Russian crude imports have suspended purchases for the coming months.

Oil prices fell earlier as traders focused on the upcoming OPEC+ meeting. A third monthly production increase of 137,000 barrels per day would be the baseline scenario for the group's upcoming talks, according to delegates quoted this week, in line with market expectations. The discussions come at a crucial time for the global market, which is expected to experience oversupply in the coming months, while overlapping political factors add uncertainty.