Oil prices jump after Trump blocks Venezuelan tankers
Oil prices shot up over 1% on Wednesday after US President Donald Trump ordered a total and complete blockade of all sanctioned oil tankers entering and leaving Venezuela.
Tensions are high, with Trump regarding Venezuela's leaders as a foreign terrorist organization.
The announcement affected oil prices, which rose more than 1% following the news.
What's behind the price spike?
Brent crude hit $59.79 a barrel, while US West Texas Intermediate reached $56.12 at 0730 GMT on Wednesday—Brent up 87 cents and WTI up about 85 cents.
The surge followed news of the blockade and came right after prices had dipped near five-year lows, thanks to hopes of peace in Ukraine and possible easing of sanctions on Russia.
Why does Venezuela matter here?
Venezuela produces about 1% of the world's oil, mainly exporting to China, the US, and Cuba.
But experts say that with plenty of sanctioned oil already out there—and talk that Russian sanctions might ease—the price boost may not last long.
Still, it's a big moment for anyone watching global energy or just wondering why gas might get pricier soon.