Trump Venezuela blockade sends global oil prices soaring over 2%

Global crude oil prices surged more than 2% early Wednesday, December 17, after U.S. President Donald Trump announced a naval blockade targeting Venezuela’s oil exports.

This news rattled energy markets and sent shockwaves through global finance.

The global benchmark Brent Crude jumped to $60.29 per barrel, a gain of over 2.3% while the U.S. West Texas Intermediate (WTI) benchmark rose 2.37% to $56.59.

The rally sharply reversed a recent slump that had seen Brent dip below $60 a barrel for the first time since May, driven by supply gluts and optimism over a potential Russia-Ukraine peace plan.

President Trump posted on Truth Social late Tuesday, declaring he had ordered a “total and complete blockade” of all sanctioned oil tankers entering and leaving Venezuela, which he described as being “completely surrounded by the largest Armada ever assembled in the history of South America.”

Moreover, he referred to the government of Nicolas Maduro as a “foreign terrorist organization" alleging Venezuela’s oil revenues fund “Drug Terrorism, Human Trafficking, Murder, and Kidnapping.”

According to market analysts, prices were rising in anticipation of a significant reduction in Venezuelan exports, which is a major OPEC producer, though traders are awaiting details on how the blockade will be enforced and whether it might extend to non-sanctioned vessels.

Beyond oil prices, other assets also got lifted due to geopolitical shockwaves. Gold prices advanced toward record highs above $4,330 an ounce.

European stock markets climbed, led by giants BP and Shell, which both gained over 2%.

The U.S. dollar strengthened, and Treasury yields edged higher.

For now, traders are bracing for reduced supply and heightened volatility, as the Trump administration’s latest move transforms a long-stranding economic pressure campaign into a naval confrontation with one of the world’s largest oil producers.