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https://www.reuters.com/world/americas/trump-orders-blockade-sanctioned-oil-tankers-leaving-entering-venezuela-2025-12-16/
WASHINGTON, Dec 16 (Reuters) - U.S. President Donald Trump on Tuesday ordered a "blockade" of all sanctioned oil tankers entering and leaving Venezuela, a move set to sharply escalate tensions between Washington and Caracas as he targets Venezuela's main source of income.
It is unclear how the Trump administration will impose the blockade against the sanctioned vessels, and whether he will turn to the Coast Guard to interdict vessels like he did last week. The administration has moved thousands of troops and nearly a dozen warships - including an aircraft carrier - to the region in recent months.
"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. "Therefore, today, I am ordering A TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela."
U.S. crude futures climbed over 1% to $55.96 a barrel in Asian trading after Trump's announcement. Oil prices settled at $55.27 a barrel on Tuesday, the lowest close since February 2021.
Oil market participants said prices were rising in anticipation of a potential reduction in Venezuelan exports, although they were still waiting to see how Trump’s blockade would be enforced and whether it would extend to include non-sanctioned vessels.
"We don’t know how much or how quickly Trump will enforce this," said Rory Johnston, founder of oil markets-focused newsletter Commodity Context.
There has been an effective embargo in place after the U.S. seized a sanctioned oil tanker off the coast of Venezuela last week, with loaded vessels carrying millions of barrels of oil staying in Venezuelan waters rather than risk seizure.
WASHINGTON, Dec 16 (Reuters) - U.S. President Donald Trump on Tuesday ordered a "blockade" of all sanctioned oil tankers entering and leaving Venezuela, a move set to sharply escalate tensions between Washington and Caracas as he targets Venezuela's main source of income.
It is unclear how the Trump administration will impose the blockade against the sanctioned vessels, and whether he will turn to the Coast Guard to interdict vessels like he did last week. The administration has moved thousands of troops and nearly a dozen warships - including an aircraft carrier - to the region in recent months.
"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. "Therefore, today, I am ordering A TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela."
U.S. crude futures climbed over 1% to $55.96 a barrel in Asian trading after Trump's announcement. Oil prices settled at $55.27 a barrel on Tuesday, the lowest close since February 2021.
Oil market participants said prices were rising in anticipation of a potential reduction in Venezuelan exports, although they were still waiting to see how Trump’s blockade would be enforced and whether it would extend to include non-sanctioned vessels.
"We don’t know how much or how quickly Trump will enforce this," said Rory Johnston, founder of oil markets-focused newsletter Commodity Context.
There has been an effective embargo in place after the U.S. seized a sanctioned oil tanker off the coast of Venezuela last week, with loaded vessels carrying millions of barrels of oil staying in Venezuelan waters rather than risk seizure.
