Trump Orders “Blockade” of Sanctioned Oil Tankers Leaving, Entering Venezuela
WASHINGTON — U.S. President Donald Trump ordered on Tuesday a “blockade” of all sanctioned oil tankers entering and leaving Venezuela, in Washington’s latest move to increase pressure on Nicolas Maduro’s government, targeting its main source of income.
The administration has moved thousands of troops and nearly a dozen warships — including an aircraft carrier — to the region. It is unclear how Trump will impose the move against the sanctioned vessels, and whether he will turn to the Coast Guard to interdict vessels like he did last week.
“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.”
Legal Questions Arise
American presidents have broad discretion to deploy U.S. forces abroad, but Trump’s asserted blockade marks a new test of presidential authority, said international law scholar Elena Chachko of UC Berkeley Law School.
Blockades have traditionally been treated as permissible “instruments of war,” but only under strict conditions, Chachko said. “There are serious questions on both the domestic law front and international law front,” she added.
U.S. Representative Joaquin Castro, a Texas Democrat, called the blockade “unquestionably an act of war.”
“A war that the Congress never authorized and the American people do not want,” Castro added on X.
Oil Market Impact
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.
U.S. crude futures climbed over 1 percent 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.
Shadow Fleet Concerns
Since the U.S. imposed energy sanctions on Venezuela in 2019, traders and refiners buying Venezuelan oil have resorted to a “shadow fleet” of tankers that disguise their location and to vessels sanctioned for transporting Iranian or Russian oil.
As of last week, more than 30 of the 80 ships in Venezuelan waters or approaching the country were under U.S. sanctions, according to data compiled by TankerTrackers.com.
Experts Weigh In
David Goldwyn, a former State Department energy diplomat, said if Venezuela‘s affected exports are not replaced by increased OPEC spare capacity, the impact on oil prices could be in the range of five to eight dollars a barrel.
“I would expect inflation to skyrocket, and massive and immediate migration from Venezuela to neighboring countries,” Goldwyn said.
Original Article: Trump orders ‘blockade’ of sanctioned oil tankers leaving, entering Venezuela — Co