WILLEMSTAD, WASHINGTON – The Trump administration's abrupt termination of oil trade licenses for companies operating in Venezuela—including U.S.-based Global Oil Terminals and Spain's Repsol—could trigger economic chaos and accelerate mass migration from the crisis-stricken nation, analysts warn. The move, which follows Chevron's earlier license revocation, leaves Venezuela's crumbling oil industry increasingly dependent on geopolitical rivals like China while threatening to destabilize the region further.
Sanctions Squeeze
Immediate Impact: Global Oil Terminals (owned by Trump-linked GOP donor Harry Sargeant III) and other firms must cease all Venezuelan operations by May 31, with payments to local entities frozen as of Wednesday.
New Tariffs: A 25% U.S. import levy on Venezuelan oil/gas takes effect Wednesday, prompting major buyers like India’s Reliance Industries to scale back purchases.
Migration Fears: With 7+ million Venezuelans already displaced since 2014, economists predict sanctions could push hundreds of thousands more to flee toward the U.S. and neighboring countries.
Political Calculus
The hardened stance—spearheaded by Secretary of State Marco Rubio—aims to isolate Nicolás Maduro’s regime after his disputed July re-election. Trump officials accuse Venezuela of:
Refusing deported migrants (Rubio: "The only Western Hemisphere nation taking zero returnees").
Deliberately sending criminals to the U.S. border.
Geopolitical Vacuum
Critics argue the sanctions will backfire by ceding influence to China/Russia in Venezuela’s oil sector and worsening humanitarian conditions that drive migration—a key issue in Trump’s 2024 campaign.
The Obama/Biden administrations had eased some sanctions to incentivize fair elections, but Maduro retained power despite opposition gains.