US President Donald Trump has ordered a “blockade” of all sanctioned oil tankers entering and leaving Venezuela as Washington continues to ratchet up financial pressure on the Nicolás Maduro regime.

“For the theft of our Assets, and many other reasons, including Terrorism, Drug Smuggling, and Human Trafficking, the Venezuelan Regime has been designated a FOREIGN TERRORIST ORGANIZATION,” Trump wrote on Truth Social.

“Therefore, today, I am ordering A TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela.”

Trump also said the US military build-up would continue until Venezuela “return to the United States of America all of the Oil, Land, and other Assets that they previously stole from us”.

While no details were offered by the White House, it is understood that Trump was referencing assets nationalised under the administration of Hugo Chavez, Maduro’s predecessor.

Oil prices jumped by more than 1% following Trump’s blockade order, however even a sustained blockade is unlikely to have lasting consequences for supply. 

Benchmark crude prices fell by around $2-$3 a barrel last week in the wake of increasing signs of global oil oversupply.

Notably, the US’ seizure of a tanker carrying Venezuelan crude — and associated fears that this could lead to Venezuelan supply plummeting by up to 900,000 barrels per day — had little meaningful impact on crude prices, which itself reflected expectations that the market will be amply supplied next year. 

Attention will now turn to practicalities of the blockade whether it will extend to include non-sanctioned vessels.

The US has designated 53 vessels under its existing Venezuelan sanctions, however there are currently dozens of shadow fleet* vessels regularly serving Venezuelan trades. It remains unclear whether the US will move to sanction those vessels directly or simply enforce a complete blockade.

After the US seized the VLCC Skipper (IMO: 9304667) last week, several vessels diverted away from Venezuela, indicating growing caution from operators unwilling to risk US interdictions.

According to Vortexa analysis, early signals include vessels slowing, loitering or reversing course, with a growing number remaining in or near Venezuelan waters.

“This pattern suggests counterparties are reassessing not only near-term loadings, but also inbound product movements that support blending and export operations,” said Vortexa director of maritime risk and intelligence Claire Jungman. 

Washington imposed oil sanctions on Venezuela during Trump’s first term, but a small amount is sent to the US under a special licence provided by Washington to US oil major Chevron. About 80% of Venezuelan oil exports are shipped to China.

Venezuela oil exports exceeded 900,000 barrels a day in November.