In an earlier post I noted that U.S. President Donald Trump has ordered what he described as a “total and complete blockade” of all sanctioned oil tankers entering or leaving Venezuela, sharply escalating Washington’s confrontation with President Nicolás Maduro’s government and injecting fresh geopolitical risk into global energy markets.
In a post on Truth Social, Trump said the Venezuelan regime had been designated a “foreign terrorist organization,” citing alleged involvement in terrorism, drug trafficking and human smuggling. On that basis, he said the United States would block sanctioned oil shipments in and out of the OPEC nation. It remains unclear how the blockade will be enforced, though the administration has already stepped up military activity in the region, deploying thousands of troops and multiple warships, including an aircraft carrier, in recent months.
The announcement had an immediate market impact. U.S. crude futures rose more than 1% in Asian trading to around $55.96 a barrel, rebounding from Tuesday’s settlement at $55.27 — the lowest close since February 2021. The price reaction reflects concerns that Venezuelan supply could be further constrained, tightening regional crude flows despite ample global inventories.
In practical terms, an effective embargo already appears to be in place. Following the U.S. seizure of a sanctioned tanker off Venezuela’s coast last week, multiple vessels carrying millions of barrels of crude have reportedly remained in Venezuelan waters rather than risk interception. Trump’s order formalises that pressure and raises the stakes for shippers, insurers and counterparties involved in Venezuelan oil exports.
Caracas reacted angrily. Speaking shortly before Trump’s announcement, Maduro accused the United States of seeking to “colonise Venezuela” to seize control of its vast oil, gas and mineral resources, vowing to defend national sovereignty. He has repeatedly warned that the growing U.S. military presence is aimed at overthrowing his government.
The move marks a further escalation in Trump’s hardline Venezuela strategy, which has included military strikes near the country and threats of direct land operations. For markets, the risk is that sustained disruption to Venezuelan supply adds another layer of volatility to oil prices already sensitive to geopolitics and policy uncertainty
