Oil prices climbed sharply on Wednesday after U.S. President Donald Trump ordered a total and complete blockade of all sanctioned oil tankers entering and leaving Venezuela, a move that added fresh geopolitical risk to global energy markets already grappling with weak demand.
Brent crude futures rose about 0.9% to nearly $59.50 a barrel, while U.S. West Texas Intermediate crude increased around 1% to about $55.80 a barrel in early Asian trading. The gains followed a recent stretch of weak pricing, including a five-year low close in the previous session, as progress in peace talks between Russia and Ukraine sparked expectations of eased sanctions and more supply.
Trump’s directive to block sanctioned tankers is part of a broader effort to pressure Venezuela’s government by restricting its vital oil exports. The White House also labelled the Venezuelan leadership a foreign terrorist organization as it seeks to tighten economic constraints on President Nicolás Maduro’s regime.
Market analysts say the blockade could potentially impact around 0.4-0.5 million barrels per day of crude exports, potentially lifting prices by $1–$2 per barrel if enforced over time and if alternative supplies are not increased. However, traders noted that the oil market remains relatively well supplied for now, with the short-term outlook influenced by both geopolitical developments and demand concerns.
Investors are watching closely how the situation unfolds, including how the blockade would be implemented and whether there will be any retaliatory actions from Venezuela or other nations, which could further disrupt supply chains and push energy prices higher.
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