Trump’s Venezuela Oil Blockade: What next as US Deploys Largest Armada in the Caribbean

Former US President Donald Trump has ordered a sweeping naval blockade targeting Venezuela’s oil exports, marking a dramatic escalation in Washington’s confrontation with Caracas. Announced on December 16, the move signals a shift from economic sanctions to direct military enforcement, backed by what Trump claims is the largest US naval deployment ever assembled in South American waters.

In a statement posted on Truth Social, Trump declared Venezuela a “foreign terrorist organization,” accusing President Nicolás Maduro’s government of using oil revenues to finance drug trafficking, human trafficking, and violent crime. He claimed 11 US Navy vessels, including an aircraft carrier and amphibious assault ships, are now positioned to enforce the blockade.

What Trump Announced

Trump described the move as a “total and complete blockade of all sanctioned oil tankers” entering or leaving Venezuela. He accused what he called the “illegitimate Maduro regime” of profiting from “stolen oil fields” to fund criminal activity and warned that the naval force “will only get bigger.”

He also demanded the return of “oil, land and other assets” he claimed Venezuela had taken from the United States, though he did not specify which assets he was referring to. The sanctions designation, Trump argued, provides the legal basis for the naval blockade now being enforced.

Impact on Oil Markets and Regional Stability

Despite holding the world’s largest proven oil reserves, Venezuela currently produces around one million barrels per day, constrained by sanctions and chronic underinvestment. Much of its crude is exported to China through a shadow fleet designed to bypass restrictions.

Former US diplomat David Goldwyn warned that any sustained disruption to Venezuelan exports could push global oil prices up by $5–8 per barrel, potentially fuelling inflation and increasing migration pressures across Latin America.

How This Blockade Differs from Past Sanctions

While US sanctions on Venezuela’s oil sector date back to 2005 and were sharply tightened in 2019, this move represents a fundamental escalation. Previous measures relied on financial and trade restrictions; the current strategy involves direct military interdiction of oil shipments.

Roughly 712 vessels worldwide are currently listed on the US Specially Designated Nationals (SDN) list, with nearly 40 vessels operating in Venezuelan waters. According to Tanker Trackers, about 18 fully loaded tankers—carrying an estimated 11 million barrels of oil worth hundreds of millions of dollars—are effectively trapped.

The blockade follows the recent seizure of the tanker Skipper, which was transporting 1.9 million barrels of oil valued at $95 million, underscoring Washington’s intent to physically disrupt Venezuela’s oil trade.

Is This an Act of War?

The blockade has triggered serious legal and constitutional questions in the United States. A 1961 Justice Department memo, cited by CNN, describes naval blockades as a “belligerent act” typically justified only during a state of war.

US Congressman Joaquin Castro called the move “unquestionably an act of war,” arguing it was undertaken without congressional authorisation. Lawmakers are expected to vote on a resolution urging de-escalation.

Venezuela has filed a formal complaint with the UN Security Council, with Ambassador Samuel Moncada condemning the blockade as “state piracy.” Legal experts, including Elena Chachko of UC Berkeley, say the move could become a landmark test of presidential war powers under both US and international law.

Human Cost and Military Escalation

Even before the blockade was formally announced, the US military buildup had already proved deadly. Al Jazeera reports that at least 90 people have been killed since September during US attacks on vessels in the eastern Pacific and Caribbean as part of Operation Southern Spear.

The operation, officially framed as counter-narcotics enforcement, has faced bipartisan scrutiny for expanding US military action without congressional approval. Combined casualties now approach 100 deaths, intensifying criticism of the Venezuela–US confrontation.

(yMedia is the agency partner for this story)