US Implements Total Blockade on Venezuelan Oil Exports Amid Heightened Military Presence
The White House has called for a total blockade on all Venezuelan oil exports under sanctions affecting both incoming and outgoing shipments. This action follows the recent US seizure of an oil tanker off Venezuela's coast. President Trump announced on Truth Social that he ordered a total and complete blockade, with enforcement potentially involving the US Coast Guard. Thousands of US troops and nearly a dozen warships, including an aircraft carrier, have been deployed to the region, marking the largest US military presence there since 1989.
Venezuelan President Nicolas Maduro condemned the tanker seizure as piracy and warned that the blockade would seriously affect Venezuela. The White House accuses Maduro's government of using stolen oil revenues to finance illicit activities such as drug trafficking, human trafficking, murder, and kidnapping, although there is no public evidence that the seized vessels carried fentanyl or cocaine. Maduro, in turn, accuses the US of leveraging the war on drugs as a pretext to topple his government. Since 2013, around 8 million Venezuelans have fled the country. Maduro was sworn in for a third term in January after an election widely regarded as fraudulent.
Venezuela holds the world's largest oil reserves but contributes only about 0.8% of global oil output, exporting approximately 900,000 barrels per day, mostly to China. Oil remains the main source of foreign revenue and funds over half of the Venezuelan government's budget. Analysts suggest that the loss of Venezuelan exports could tighten oil markets in the short term, pushing prices higher. In the long term, a political shift could attract more Western oil companies to operate in Venezuela.
The announcement of the blockade contributed to a rise in Brent crude oil prices, which increased by about 1.5% to around $60 per barrel, reflecting concerns over potential disruptions to global oil supplies.
