US President Donald Trump has ordered a total blockade of all sanctioned oil tankers entering or leaving Venezuela, according to a report from Reuters late Tuesday, sharply escalating Washington’s pressure on the Venezuelan government.
In a post on Truth Social, Trump said the decision was driven by what he described as the “theft of our assets” and broader security concerns. He added that the Venezuelan regime has been designated a Foreign Terrorist Organization, citing allegations of terrorism, drug smuggling, and human trafficking. “Therefore, today, I am ordering a total and complete blockade of all sanctioned oil tankers going into, and out of, Venezuela,” Trump wrote.
The announcement follows reports that US forces recently seized an oil tanker in waters near Venezuela. It also comes amid a significant buildup of US military assets off the Venezuelan coast, an operation that US officials have said is aimed at countering drug trafficking activities in the region.
Oil market participants reacted cautiously to the news. Traders noted that crude prices were moving higher on expectations that Venezuelan oil exports could be disrupted. However, uncertainty remains over how the blockade will be enforced in practice and whether the measures will be limited strictly to sanctioned vessels or expanded to include non-sanctioned tankers as well.
Market reaction
At the time of writing, West Texas Intermediate (WTI) crude is trading 0.86% higher on the day, at $55.55 per barrel, reflecting early risk premiums tied to potential supply constraints.
