Global oil markets reacted sharply after President Donald Trump ordered a sweeping blockade on sanctioned Venezuelan oil tankers, reviving supply fears just as prices hovered near multi year lows.
Oil prices moved higher after US President Donald Trump ordered a complete blockade of all sanctioned fuel ships entering and leaving Venezuela, tightening supply expectations in an already volatile market.
Brent crude rose by 53 cents, or 0.9 percent, to settle at 59.46 dollars a barrel, while US West Texas Intermediate crude climbed 55 cents, or 1 percent, to 55.82 dollars a barrel. The rebound followed a previous session in which oil prices had settled near a five year low amid optimism over progress in Russia Ukraine peace talks.
Market sentiment had been weighed down earlier by expectations that a potential peace deal could ease Western sanctions on Moscow, allowing additional Russian oil supplies to return to global markets. That outlook shifted after Trump’s latest move targeting Venezuela.
On Tuesday, Trump ordered a blockade of all sanctioned oil vessels entering or leaving Venezuelan ports, while announcing plans to designate Venezuela’s leadership as a foreign terrorist organization. The decision marks a sharp escalation in US pressure on Caracas and has injected fresh uncertainty into oil supply forecasts.
According to a US oil trader, the move could affect between 0.4 and 0.5 million barrels of oil per day and may push crude prices higher by 1 to 2 dollars per barrel if enforcement proves effective.
However, questions remain over how the United States will implement the blockade. It is unclear whether Washington will deploy the Coast Guard or naval assets to interdict sanctioned vessels, as it did in a recent operation last week. In recent months, the US has already increased its naval presence in the region.
Trump’s announcement comes just a week after US authorities seized a sanctioned oil tanker off the Venezuelan coast. Since that seizure, Venezuelan crude exports have reportedly fallen sharply.
The US administration has intensified pressure on President Nicolas Maduro’s government, accusing it of facilitating drug trafficking into the United States. While many ships carrying Venezuelan crude are already under sanctions, vessels transporting oil from Iran and Russia remain unaffected, adding another layer of complexity to global energy markets.
