US President Trump orders a total blockade of sanctioned oil tankers to and from Venezuela, raising oil prices and legal questions over an act of war.
WASHINGTON: US President Donald Trump has ordered a total blockade of all sanctioned oil tankers entering and leaving Venezuela.
The move targets the primary income source of President Nicolas Maduro’s government, which Trump designated a “foreign terrorist organization.”
“For the theft of our Assets, and many other reasons, including Terrorism, Drug Smuggling, and Human Trafficking, the Venezuelan Regime has been designated a FOREIGN TERRORIST ORGANIZATION,” Trump wrote on Truth Social.
Venezuela’s government rejected what it called Trump’s “grotesque threat” in an official statement.
US crude oil prices rose over 1% to USD 55.96 a barrel following the announcement.
Market participants anticipate a potential reduction in Venezuelan exports, though the enforcement scope remains unclear.
International law scholar Elena Chachko said the blockade marks a new test of presidential authority.
“Blockades have traditionally been treated as permissible ‘instruments of war,’ but only under strict conditions,” Chachko stated.
US Representative Joaquin Castro, a Texas Democrat, called the blockade “unquestionably an act of war.”
An effective embargo began last week after the US seized a sanctioned oil tanker off Venezuela’s coast.
Venezuelan crude exports have since fallen sharply, worsened by a cyberattack on state-run PDVSA.
Many vessels transporting Venezuelan, Iranian, and Russian oil have not been sanctioned, including ships operated by US firm Chevron.
The global oil market remains well-supplied for now, with millions of barrels waiting off China.
A prolonged embargo could push prices higher by removing nearly one million barrels per day.
Former State Department diplomat David Goldwyn said the impact could raise oil prices by USD 5 to USD 8 per barrel.
“I would expect inflation to skyrocket, and massive and immediate migration from Venezuela to neighbouring countries,” Goldwyn added.
Traders have used a “shadow fleet” of tankers to disguise locations since US energy sanctions began in 2019.
Data shows more than 30 of 80 ships near Venezuela last week were under US sanctions.
Trump’s pressure campaign includes a ramped-up military presence and over two dozen strikes on vessels.
These military actions near Venezuela have killed at least 90 people, with Trump promising future land strikes.
Maduro alleges the US build-up aims to overthrow him and control Venezuela’s vast oil reserves.
Trump’s chief of staff Susie Wiles said Trump “wants to keep on blowing boats up until Maduro cries uncle.”
Maduro vowed to defend Venezuela, stating “imperialism and the fascist right want to colonize Venezuela.” – Reuters
