Trump’s Venezuela Campaign Disrupts an $8 Billion Oil Trade

Core Insights - The U.S. military campaign against Venezuela is significantly impacting the oil market, threatening an $8 billion revenue loss for the country [1][3] - President Trump's threats have escalated tensions, leading to a blockade on Venezuelan tanker traffic and increased military presence off the coast [2] - The situation has resulted in many tankers idling off the Venezuelan coast, with only half of them on the U.S. sanction list [3] Oil Trade Dynamics - Sanctioned tankers, referred to as the "shadow fleet," account for approximately 70% of Venezuelan oil trade, with around 900 vessels involved in transporting crude mainly to Asia [4] - Tactics used by these vessels to evade sanctions include ship-to-ship transfers, sailing under false flags, and turning off transponders [5] - The U.S. Navy's presence has complicated these tactics, making it more challenging for Venezuelan crude trade to continue [5]