On Monday, President Donald Trump announced a significant economic measure aimed at countries that engage in the purchase of oil and gas from Venezuela. He stated that these nations will face a hefty 25% tariff on any trade they conduct with the United States. This announcement was made via a post on his social media platform, Truth Social, and is set to take effect on April 2.
Following the announcement, the price of U.S. crude oil experienced a notable increase, rising by 77 cents, or 1.13%, bringing it to $69.05 per barrel by 10:54 AM ET. Meanwhile, the global benchmark, Brent crude, also saw a rise of 73 cents, translating to a 1.01% increase, reaching $72.89 per barrel. This surge in oil prices reflects the ongoing volatility in the market as geopolitical tensions continue to influence global trade.
In his address, President Trump accused the Venezuelan government of facilitating criminal activities by sending members of the Tren de Aragua gang to the United States. The Tren de Aragua has been designated by the Trump administration as a foreign terrorist organization, highlighting the administration's commitment to countering threats from this group and its associates.
This tariff is part of a broader strategy to apply economic pressure on Venezuela and its allies, aiming to deter international trade that could bolster the Venezuelan economy amidst ongoing sanctions. As the situation develops, it remains to be seen how these measures will affect global oil markets and international relations.
