Libya may sink tankers trying to load at eastern ports seized by armed protesters in an escalating confrontation over control of oil exports, Prime Minister Ali Zeidan said on Wednesday.

His warning came after Libya’s navy fired shots at the weekend to ward off a tanker that the state-run National Oil Corp. (NOC) said tried to load at one port that has been out of government control for six months.

Brent crude rose above $107 a barrel on Wednesday, supported by the new worries over Libyan supplies, which have been slashed since summer by the blockade of three key eastern ports. […]