Donald Trump has stated that Venezuela "illegally took" US oil and that the United States wants it returned. This statement comes as the Trump administration has intensified its rhetoric and actions against Venezuela, including announcing a blockade on sanctioned oil tankers to and from the country.
Thousands of troops and nearly a dozen warships have been deployed to the sea north of Venezuela in recent weeks. Venezuela has requested a UN Security Council meeting to discuss what it terms "US aggression." The blockade has already led to a sharp rise in international oil prices, with Brent crude increasing by 1.5% to nearly $60 a barrel.
While Venezuela possesses the world's largest oil reserves, its production accounts for less than 1% of global output. Despite this, oil is a crucial source of foreign revenue for the Venezuelan government.
Analysts suggest that the loss of Venezuelan crude exports due to the blockade could cause a short-term tightening of the market and higher prices.