Oil prices surge as Trump orders Venezuela oil blockade

• US oil blockade on Venezuela pushes Brent and WTI prices up 1.8–2 percent.
• European energy stocks rise, Wall Street turns lower as tech shares struggle.
• UK inflation drops faster than expected, boosting expectations of Bank of England rate cuts.
• Investors monitor US consumer inflation and employment data for Fed guidance.

Oil prices jumped on Wednesday after US President Donald Trump announced a blockade of “sanctioned” oil tankers heading to and leaving Venezuela. Both Brent and West Texas Intermediate (WTI) contracts rose more than two percent before trimming gains slightly.

“The big news is the oil-price rally after President Donald Trump announced an oil blockade on Venezuela,” said Forex.com analyst Fawad Razaqzada. “The news lifted shares in energy stocks in Europe, the likes of BP and Shell helping the UK's FTSE 100 to outperform.” Shares in both companies rose more than one percent.

The rebound partially recovered losses from Tuesday, when crude dropped 2.7 percent following Trump’s comments that a Ukraine peace deal was closer than ever, potentially easing sanctions on Russian oil and raising oversupply concerns. Razaqzada added that the Trump administration may impose further sanctions on Russia if President Vladimir Putin rejects a Ukraine deal.

- US markets show caution -

Stock indices opened higher on Wall Street but declined as the session progressed. “Investors are getting a little worried that maybe we are headed for at least economic softness, weakness, and hopefully not a recession,” said CFRA Research’s Sam Stovall.

Tech shares also struggled, with Nvidia and Alphabet declining. IG analyst Chris Beauchamp noted, “Concerns about AI have reared their head again, weighing on sentiment just as the Santa rally was meant to get underway.”

- European and Asian market updates -

In Europe, London’s FTSE 100 rose on expectations of Bank of England interest rate cuts after UK inflation fell faster than forecast, slowing to 3.2 percent in November from 3.6 percent in October. Eurozone inflation held at 2.1 percent, slightly above the European Central Bank’s target, prompting expectations that ECB rates will remain steady.

Paris and Frankfurt markets ended lower, while Asian markets were mixed. Tokyo’s Nikkei and Hong Kong’s Hang Seng rose modestly, and Shanghai’s Composite jumped 1.2 percent.

- Corporate news -

Chinese chipmaker MetaX Integrated Circuits Shanghai surged over 550 percent on its stock debut. Netflix shares climbed 1.1 percent after Warner Bros. Discovery rejected a Paramount takeover in favor of a Netflix acquisition. Warner Bros. Discovery and Paramount shares fell 1.3 percent and nearly five percent, respectively.