Trump Threatens “Total Blockade” of Sanctioned Oil Tankers in Venezuela
Some oil tankers have altered their course away from Venezuela after President Donald Trump threatened a “blockade” of sanctioned ships entering or leaving the South American country. The move could potentially choke off revenue from the world’s largest oil reserves, which are crucial to Maduro’s grip on power.
Trump announced his intentions via social media, stating that he is ordering a “total and complete blockade of all sanctioned oil tankers” into and out of Venezuela. However, it remains unclear exactly what Trump means by this threat.
US Sanctions and the Shadow Fleet
The United States has imposed sanctions on hundreds of ships, part of a massive shadow fleet of often aging vessels that have proliferated in recent years to transport oil on behalf of Iran, Russia, Venezuela, and other U.S. adversaries under sanctions. These sanctioned vessels are now navigating near Venezuela, with at least 30 vessels under sanctions tracked by Windward, a maritime intelligence firm.
A few vessels have started to change their course, perhaps fearing they could face the same fate as the Skipper, a sanctioned vessel seized by U.S. forces last week near Venezuela. Michelle Wiese Bockmann, a senior analyst at Windward, noted that this has disrupted energy flows to and from Venezuela. “Every hour when we’re tracking these vessels, we are seeing tankers that are deviating, loitering or changing their behavior,” she said.
The Hyperion‘s Journey
Among the sanctioned vessels is the Hyperion, which had been sailing toward the Jose port in Venezuela before doing a 90-degree turn early Wednesday and starting to head north away from the South American mainland. The vessel was previously part of Russia’s state-owned shipping fleet and was one of 173 sanctioned in the final days of the Biden administration for allegedly facilitating Russian oil sales in violation of sanctions over Moscow’s invasion of Ukraine.
The Hyperion‘s ownership is obfuscated under multiple layers of offshore companies, some listed in Dubai, United Arab Emirates. Wiese Bockmann noted that this lack of transparency makes it difficult to track the vessel’s movements and raises concerns about its potential seizure. “It’s just screaming that it’s in a position to be seized,” she said.
Consequences for Energy Flows
The diversion of oil tankers away from Venezuela could have significant consequences for energy flows to and from the country. The world’s largest oil reserves are crucial to Maduro’s grip on power, and any disruption to these supplies could have far-reaching implications for global energy markets. As Wiese Bockmann noted, “It’s quite clear that this has disrupted energy flows to and from Venezuela.”
Original Article: Oil tankers divert from Venezuela after Trump threatens ‘total blockade’ of sanctioned ships — Yahoo