Oil Prices Rise After Trump Blocks Venezuelan Tankers

Oil prices climbed on Wednesday after US President Donald Trump ordered a “total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela, heightening geopolitical tensions amid ongoing concerns over global demand.

Brent crude futures rose 53 cents, or 0.9 percent, to $59.46 a barrel by 0105 GMT, while US West Texas Intermediate (WTI) crude gained 55 cents, or 1 percent, to $55.82 a barrel.

The price increase followed a sharp decline in the previous session, when oil settled near five-year lows on optimism over progress in Russia–Ukraine peace talks, which could potentially lead to the easing of Western sanctions on Moscow and an increase in global supply.

President Trump announced the blockade on Tuesday, stating that Venezuela’s leadership would now be regarded as a foreign terrorist organisation. The move is expected to disrupt between 0.4 and 0.5 million barrels of oil per day, potentially lifting prices by $1 to $2 per barrel, according to a US-based oil trader.

Matias Togni, an analyst at oil market insights firm Next Barrel, said the immediate impact would likely be seen in physical market premiums rather than outright prices. He noted that alternatives such as Canadian and Colombian crude blends could see increased demand, while the overall supply loss linked to Chevron equity cargoes may remain below 200,000 barrels per day.

Uncertainty remains over how the United States will enforce the blockade, including whether the Coast Guard will be deployed to intercept vessels, as was done in a recent operation. The US has also increased its naval presence in the region in recent months.

Trump’s announcement comes a week after US authorities seized a sanctioned oil tanker off the Venezuelan coast, intensifying pressure on the government of President Nicolás Maduro, whom Trump has accused of facilitating drug flows into the United States.

Since the seizure, Venezuelan crude exports have reportedly declined sharply. While many vessels transporting Venezuelan oil are already under sanctions, some ships carrying crude from Venezuela, as well as from Iran and Russia, remain unsanctioned.