In a major escalation of tensions, supporters of the Venezuelan government have taken to the streets, waving a giant national flag in protest against the United States' seizure of an oil tanker. The demonstration comes directly after former US President Donald Trump called for a sweeping blockade of the South American nation's crucial oil industry.
Trump's 'Armada' and the Act of 'Piracy'
The White House has demanded a halt to all Venezuelan oil exports, a move described by President Nicolás Maduro as "an act of international piracy." This follows the US seizure of an oil tanker off the Venezuelan coast just one week prior. Trump, posting on his Truth Social platform, stated he was ordering a "total and complete blockade" on all sanctioned tankers entering or leaving Venezuela.
While the exact enforcement mechanism remains unclear, one likely method is further seizures by the US Coast Guard. The announcement accompanies a significant US military build-up in the region, which Trump boasted constitutes the "largest Armada ever assembled in the History of South America." This presence is estimated to be the largest since the 1989 US invasion of Panama.
The Accusations and the Oil Motive
Trump has publicly accused Maduro's government of using proceeds from "stolen" oil to finance activities including drug trafficking and terrorism. The US administration has long claimed Venezuela facilitates the narcotics trade, though it has provided no public evidence linking seized vessels to drugs like fentanyl or cocaine, which are primarily produced elsewhere.
Maduro, who began a third term in January after a disputed election, has forcefully denied all allegations. He counters that the US is using the "war on drugs" as a pretext to overthrow his government and lay claim to Venezuela's vast natural resources. The country possesses the world's largest oil reserves but currently produces only about 0.8% of global output, exporting roughly 900,000 barrels per day, primarily to China.
Global Market Repercussions
The geopolitical shockwaves were immediately felt in financial markets. The threat of a blockade triggered a sharp reversal in oil prices, ending a steady monthly decline. The price of Brent crude jumped by 1.5% to nearly $60 a barrel on Wednesday, recovering from a multi-year low earlier in the week.
Analysts at Goldman Sachs suggest that while the loss of Venezuelan exports could tighten the market and raise prices in the short term, a longer-term political resolution could eventually flood the market with more oil. For now, the situation remains volatile, with the vital commodity serving as the centrepiece of a high-stakes international standoff.
