Oil Prices Rebound as Trump Orders Venezuela Tanker Blockade and Russia Sanctions Loom
Brent Crude Climbs on Trump’s Venezuela Tanker Blockade and Looming Russia Sanctions Threat Amid Oversupply Fears
In a classic case of geopolitics injecting life into a slumbering market, oil prices staged a modest comeback on December 17, 2025, climbing more than 1% as traders digested escalating risks from two familiar hotspots: Venezuela and Russia. Brent crude, the global benchmark, rose as much as 2.4% in early trading, briefly topping $60 per barrel before settling around $59-60, while West Texas Intermediate advanced toward $57. It was a welcome relief after prices plunged to near five-year lows the previous session, but let's not get carried away, this rally feels more like a fleeting adrenaline rush than a sustained bull run.
The spark came courtesy of President Donald Trump, who on Tuesday ordered a "total and complete blockade" of all sanctioned oil tankers entering or leaving Venezuela. This escalation targets the Maduro regime's lifeline, building on recent U.S. seizures of vessels and a growing military presence in the region. Venezuela's oil exports, already battered by years of sanctions, hover around 900,000 barrels per day, with the bulk heading to China at discounted rates. Analysts estimate the blockade could disrupt up to 300,000 barrels daily from sanctioned vessels alone, though non-sanctioned flows, including those chartered by Chevron under U.S. authorization, remain untouched for now. Caracas swiftly condemned the move as "piracy" and a violation of international law, but the immediate market reaction was clear: a quick risk premium baked into prices.

