Crude prices surged and energy stocks rose Monday after President Donald Trump vowed to slap a sweeping 25% tariff on any country that imports Venezuelan oil, signaling renewed geopolitical tensions in global energy markets.
West Texas Intermediate light crude, as closely tracked by the United States Oil Fund
"Any country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country," Trump said, adding that enforcement would begin next month and be "registered and documented."
The statement came via a post on Truth Social, where the former president accused Venezuela of sending violent criminals to the United States and branded the Tren de Aragua gang as a "Foreign Terrorist Organization."
Trump added that the proposed secondary tariffs would go into effect on April 2, what he called "Liberation Day in America."
Venezuela's oil exports have risen in recent years, and they remain a crucial revenue source for the embattled regime of Nicolás Maduro.
According to Reuters, Venezuela exported 772,000 barrels a day of crude last year, marking a 10% increase from a year earlier. China is widely considered the largest purchaser of Venezuelan crude, though much of the oil arrives through indirect routes or intermediaries that obscure its origin to sidestep international sanctions.
Beyond geopolitics, U.S. economic data on Monday gave oil another push. Business activity surveys in March came in stronger than expected, easing recession fears but raising concerns that input costs may be accelerating again.
US Energy Stock Reactions
The oil rally ignited gains across the energy sector. Exxon Mobil Corp.
The Energy Select Sector SPDR Fund
