Oil jumps over 1% as Trump orders blockade of sanctioned oil tankers leaving, entering Venezuela

US crude futures rose more than 1% on Wednesday as U.S. President Donald Trump ordered "a total and complete" blockade of all sanctioned oil tankers entering and leaving Venezuela.

US crude futures were up 1.3%, or 72 cents, to trade at $55.99 at 0022 GMT.

Oil prices settled near five-year lows in the previous session on progress in Russia-Ukraine peace talks, as a deal may see western sanctions on Moscow eased, freeing up supply at a time of fragile global demand.

Trump on Tuesday ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, adding that he now regarded the nation's rulers as a foreign terrorist organization.

Trump's comments came a week after the U.S. seized a sanctioned oil tanker off the coast of Venezuela, stepping up a pressure campaign on the government of Venezuelan leader Nicolas Maduro, who Trump has blamed for drugs entering the US.

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