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Oil prices climbed more than 1% on Wednesday after U.S. President Donald Trump ordered what he described as a “total and complete” blockade of all sanctioned oil tankers entering and leaving Venezuela, injecting fresh geopolitical risk into energy markets already grappling with demand concerns.
Brent crude futures rose 87 cents, or 1.5%, to $59.79 a barrel by 0730 GMT, while U.S. West Texas Intermediate (WTI) crude gained 85 cents, also 1.5%, to $56.12 a barrel.
The rebound followed a sharp selloff in the previous session, which saw oil prices settle near five-year lows amid progress in Russia–Ukraine peace talks. Hopes that a potential deal could lead to an easing of Western sanctions on Moscow have fueled expectations of increased supply, weighing on prices at a time when global demand remains fragile.
Market sentiment shifted on Tuesday after President Trump announced the blockade and labeled Venezuela’s rulers a foreign terrorist organization. The move comes just a week after the United States seized a sanctioned oil tanker off the Venezuelan coast, escalating tensions in the region.
Traders in Asia noted that the price rise was also supported by a technical rebound, as futures buying picked up after crude prices slipped below $60 a barrel earlier in the week.
Another trader cautioned that the rally may be short-lived, suggesting the current uptick could provide an opportunity for some investors to build short positions.
Uncertainty remains over how the blockade will be enforced, how many tankers will be affected, and whether the U.S. will deploy the Coast Guard to interdict vessels, as it did in last week’s seizure. In recent months, Washington has also increased its naval presence in the region.
While many vessels lifting Venezuelan crude are already under sanctions, others transporting oil from Venezuela, Iran, and Russia remain unsanctioned. Tankers chartered by Chevron continue to ship Venezuelan crude to the United States under a prior authorization granted by Washington.
China remains the largest buyer of Venezuelan oil, with the country accounting for roughly 4% of its crude imports.
