Venezuela Faces Economic Pressure Amid U.S. Sanctions Blockade

The U.S. blockade of Venezuelan oil tankers could curtail foreign currency flows, increasing inflation pressure. Trump's sanctions aim to weaken Maduro's regime by targeting Venezuelan oil exports. Venezuelan government denies drug trade links and accuses the U.S. of resource control motives.

Venezuela's economy could face increased inflation as foreign currency flows dwindle due to Washington's blockade on oil tankers, analysts warn. The move by U.S. President Donald Trump aims to exert pressure on Venezuelan President Nicolas Maduro by targeting the nation's primary revenue stream, oil exports.

In response, oil buyers have demanded discounts and contract changes from Venezuela, claiming the U.S. seeks regime change to control natural resources, especially crude reserves. Approximately 80% of Venezuela's exports head to Asia, but uncertainty looms over oil shipments, hitting revenue, according to experts.

Sanctions complicate currency exchange for raw materials, raising concern about the availability of dollars. Meanwhile, inflation could soar as the depreciating bolivar affects prices of essentials. Analysts project significant price hikes, with the IMF estimating annual inflation at 548% by year-end.

(With inputs from agencies.)