The Trump administration could place sanctions on Venezuela’s lucrative oil industry. Inflation was already forecast to reach 10 million percent in the country this year, due to chronic economic mismanagement. On Wednesday the US said it considered Juan Guaido, the opposition President of Venezuela’s National Assembly, as the country’s legitimate President.
In a statement, President Trump warned: “I will continue to use the full weight of United States economic and diplomatic power to press for the restoration of Venezuelan democracy.”
The US President’s unconventional move came amid huge anti-regime protests, which have been taking place across Venezuela.
Shocking pictures show masked men firing tear gas, protesters burning cars and civilians covered in blood after being beaten up by police officers – who also fired tear gas against demonstrators.
After the US announcement Venezuela’s socialist President Nicolas Maduro gave American diplomats in the country 72 hours to leave.
Washington could increase pressure on President Maduro by extending sanctions to Venezuela’s oil market, the lifeblood of what remains of its economy.
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According to RBC Capital Markets Venezuelan oil production is already forecast to fall from 500,000 barrels a day to 300,000 over the course of the year.
If the US stopped importing crude Venezuelan oil, or exporting the diluents it needs to dilute its heavy oil, this figure could fall further.
The US could also sanction Major General Manuel Quevedo, sitting President of the OPEC group of oil exporting nations.
It is Venezuela’s turn to hold OPEC’s rotating presidency this year and Mr Quevedo is an officer in the country’s armed forces.
US Senator Marco Rubio has previously suggested he should face sanctions for human rights violations, following the use of violence against opposition protestors.
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President Maduro was reelected last year, in a vote which was boycotted by the opposition and unrecognised by the US, EU and many South American countries.
On Wednesday Mr Guaido, an opposition leader in Venezuela’s National Assembly, announced he was the country’s legitimate President.
This was recognised by the US, Canada and several South American nations.
However the Maduro regime accused the opposition of attempting to organise a coup.
Over the past five years some three million Venezuelans have fled the country due to its economic collapse.