U.S. President Donald Trump on Tuesday ordered a “total and complete blockade” of all sanctioned oil tankers entering or leaving Venezuela, escalating Washington’s pressure campaign against President Nicolas Maduro’s government and targeting the country’s main source of revenue. Announcing the move on Truth Social, Trump accused the Venezuelan regime of terrorism, drug smuggling and human trafficking, while Venezuela’s government rejected the order as a “grotesque threat.” It remains unclear how the blockade will be enforced, though the U.S. has already increased its military presence in the region.
The announcement pushed oil prices higher in Asian trade, with Brent crude and U.S. West Texas Intermediate both rising more than 1% on expectations that Venezuelan exports could fall sharply. Exports have already declined following the U.S. seizure of a sanctioned tanker last week and a cyberattack on state oil company PDVSA. Analysts warned that a prolonged disruption could remove up to a million barrels a day from global supply, potentially lifting oil prices by $5 to $8 a barrel.
Legal experts and U.S. lawmakers raised concerns over the move, with some calling the blockade an act of war that lacks congressional authorization. Venezuela, which holds the world’s largest proven crude reserves, has accused Washington of seeking to overthrow Maduro and seize control of its resources. China remains the largest buyer of Venezuelan crude, and markets are watching closely to see whether the U.S. blockade extends beyond sanctioned vessels and how long it remains in place.
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