US announces oil tanker blockade on Venezuela as Caracas warns of economic fallout

US President Donald Trump on Tuesday announced a sweeping “blockade” on all oil tankers subject to US sanctions entering or leaving Venezuela, a move that significantly escalates tensions between Washington and Caracas and threatens Venezuela’s primary source of income.

In a statement posted on his social media platform, Truth Social, Trump said the decision followed what he described as the “theft of US assets” and accused the Venezuelan government of involvement in terrorism, drug smuggling and human trafficking.

He added that Washington has designated the Venezuelan regime a “foreign terrorist organization,” declaring that he had ordered a “total and complete blockade” of sanctioned oil vessels trading with the country, according to dw.com

The US president did not clarify how the blockade would be enforced, nor whether the US Coast Guard would be tasked with intercepting vessels, as occurred during a recent seizure of a sanctioned tanker. The announcement comes amid an expanded US military presence in the Caribbean, where thousands of troops, nearly a dozen warships and an aircraft carrier have been deployed in recent months.

Venezuela responded sharply, registering a formal protest and warning of severe economic consequences. In a statement, the government described Trump’s move as a “grotesque and reckless threat,” accusing Washington of violating international law, free trade principles and freedom of navigation.

Caracas said the US president was treating Venezuela’s oil, land and mineral resources as if they were American property, alleging that the blockade amounted to an attempt to seize the country’s wealth. The government announced plans to denounce the decision before the United Nations.

Tensions between the two countries have been steadily rising. In recent months, US forces have carried out multiple military operations near Venezuelan waters, which Washington says are aimed at combating drug trafficking.

President Nicolas Maduro’s government, however, has accused the United States of using these actions as a pretext to destabilize Venezuela and gain control over its vast oil reserves — the largest proven crude reserves in the world.

While the US administration has formally designated Venezuela’s Cartel de los Soles as a foreign terrorist organization and alleged links between senior officials and the group, it has not publicly presented evidence to support the claims.

Analysts warn that if the blockade is enforced for an extended period, it could further restrict Venezuelan crude exports, deepen the country’s economic crisis and potentially push global oil prices higher by removing up to one million barrels per day from the market.