Trump announced a blockade of oil tankers, accusing the Venezuelan government of being a 'terrorist' regime.

 

U.S. President Donald Trump announced on Tuesday a significant escalation in foreign policy, officially designating the Venezuelan government as a "Foreign Terrorist Organization." Citing reasons such as the theft of U.S. assets, narco-trafficking, and human trafficking, Trump has ordered a "total and complete" naval blockade of all sanctioned tankers entering or leaving the nation.

In a post on Truth Social, Trump stated that Venezuela is now "completely surrounded by the largest fleet ever assembled in the history of South America." He warned that the blockade would continue to expand, adding, "They are in for a shock like they’ve never seen before."

Venezuela’s Reaction

The Venezuelan government swiftly condemned the statement as "loathsome." Officials argued that the U.S. actions constitutes a "grave threat to a sovereign nation" and a direct violation of international law, free trade, and freedom of navigation. They further described the blockade as "completely irrational."

Impact on Global Oil Markets

The economic fallout could be substantial. Andy Lipow, President of Lipow Oil Associates, told CNBC that a full-scale sanction on Venezuelan oil could affect 800,000 to 900,000 barrels per day. This disruption is estimated to drive global oil prices up by approximately $2 to $3 per barrel.

However, market analysts are closely watching China, Venezuela’s largest oil buyer. Since China benefits from discounted prices, there is speculation that they may be reluctant to comply with U.S. sanctions, potentially allowing Venezuelan oil to continue flowing into the global market.

Rising Tensions and Military Presence

This move follows months of intensified pressure on President Nicolás Maduro. In a recent interview with Politico, Trump remarked that Maduro’s "days are numbered" and notably refused to rule out a ground invasion.

Reports indicate a massive U.S. military buildup in the Caribbean, including the deployment of a supercarrier and operations targeting vessels suspected of smuggling drugs into the United States.