The Trump Administration dramatically escalated its standoff with Venezuela on Wednesday by seizing a large tanker loaded with crude oil bound for Cuba.
Why it matters: President Trump's pressure campaign on Venezuelan leader Nicolás Maduro has now struck at the heart of Venezuela's oil-based economy.
- The unofficial aim of the Venezuela campaign — which up to now has mainly entailed deadly strikes on suspected drug-running boats — is regime change in Caracas, as Axios first reported in January.
- U.S. officials say Venezuela's oil exports enrich Maduro and his family.
- Trump claimed the tanker was the largest ever to be seized, and said "other things" would be coming soon. "We keep it I guess," Trump said of the tanker.
Zoom in: The U.S. has sanctioned Venezuela's oil company for years, but this vessel was seized because it was on the U.S. Treasury Department's "Specially Designated Nationals" list for carrying sanctioned oil from Venezuela and Iran, providing the justification for it to be seized, according to a post on X from Attorney General Pam Bondi.
- The vessel is known as a VLCC, or Very Large Crude Carrier, capable of transporting as much as 320,000 deadweight tons of crude, two sources with direct knowledge said.
- The exact details of the seizure, first reported by Bloomberg, are unclear and administration officials could not be reached for comment.
The big picture: The tanker seizure also targets longtime Cuba — a close Venezuelan ally and long-time U.S. adversary. Havana sells Venezuelan crude on the black market, chiefly to Asian markets that ultimately feed China.
- The crude oil is handled by a grandson of Raul Castro, the former leader of Cuba and brother of longtime dictator Fidel Castro, the insiders say.
- In addition to splitting the profits with Venezuela, Cuba supplies intelligence services and agents who protect Maduro.
- "This is a twofer: we're going after Maduro's bank account and the Cubans that keep him in power," one of the sources said.
The fine print: David Goldwyn, an international energy expert, said U.S. limits on U.S. companies operating in Venezuela have been a boon to Asian markets, and especially China, which receives most of the 900,000 barrels lifted daily in the South American country.
- "China is buying the oil at a discount of about $30 per barrel," Goldwyn said. "So we're making China's oil purchases great again."
- One U.S. company, Chevron, is allowed to lift Venezuelan oil, but it's about 120,000 barrels daily, a far smaller quantity than goes to China.
Flashback: Foreign policy hawks in Trump's first administration tried to persuade him to seize one of Venezuela's giant tankers, but then-Defense Secretary Mark Esper blocked the move, according to one of the sources. The U.S. did seize one tanker en route to Venezuela from Iran.
In his second term, Trump has taken a far more aggressive approach to the Maduro regime under a pressure campaign orchestrated by Secretary of State Marco Rubio.
- One sources who advised the administration on Venezuela policy contended the seizure was long overdue and more effective than blowing up boats and killing people. "I told the idiots to seize ships a while ago instead of killing flunkies," the source said.
Behind the scenes: Another source said Trump hinted over the weekend that he was about to increase the pressure on Maduro.
- "Be ready, things are happening fast," Trump said privately, according to the source.
Go deeper: House passes defense bill, pressuring Pentagon to release boat strike video
Editor's note: The headline of this story has been clarified to remove a description of the vessel as a Venezuelan oil tanker. While it was carrying Venezuelan oil, it was not flagged to Venezuela.
