From Sanctions to Sea Blockade: A New Escalation in U.S.–Venezuela Tensions

Above is an AI generated image

Recently in last two days, 16th and 17th December, the tension between US and Venezuela has escalated heavily and President Trump has issued a directive, shared on his social media platform, instructing  a full naval blockade targeting all oil tankers that are currently under U.S. sanctions and are used in transporting Venezuelan oil, also president Trump designated the Venezuelan government a foreign terrorist organization causing systematic criminal activities like financing drug trafficking, human smuggling, and other activities funded through oil business.

The Venezuelan government has condemned this sanctions and sea blockade and has stated it as a violation of international law and accused the U.S. of attempting to steal Venezuelan natural resources restricting their freedom to trade.

This will have a broad implication for global energy markets, international law, and regional stability.

The economic sanctions on Venezuela have been in continuation for years but considering the sanction on Iran and Russia and reduction on global oil supply and severe sanction on Venezuelan oil can create bottle neck situation.

Oil Price Reaction after announcement of blockade

Suddenly brent crude rose about 2.4% to $60.33 per barrel, and U.S. WTI (West Texas Intermediate) rose by approx. 2.6% to approx. $56.69 per barrel.

There will be consequences to these activities, will keep you updated.