U.S. President Donald Trump has suggested the possibility of war with Venezuela amid Washington’s escalating pressure on President Nicolás Maduro’s government and the imposition of stricter measures on Venezuelan oil shipments.
In an interview with NBC News, Trump stated that the U.S. would continue seizing sanctioned oil tankers. He added that the timing of any further actions “depends on the behavior of the other side.” When asked whether toppling Maduro was the administration’s ultimate goal, Trump declined to clarify, saying only, “He knows exactly what I want.”
On Tuesday, Trump ordered a “blockade” on oil tankers entering or leaving Venezuela, aiming to intensify pressure on Maduro. This came after the U.S. recently seized an oil tanker near the Venezuelan coast.
Impact on Iraq
Regarding the potential impact on Iraq, economic expert Nabil Al-Marsoumi commented in a Facebook post, as reported by Shafaq News Agency, that Venezuela exports between 600,000 and 800,000 barrels of crude oil, part of which goes to the United States. Venezuelan crude is classified as heavy sour crude, similar to Iraq’s Basra Heavy crude.
Al-Marsoumi explained that from a financial standpoint, it is not in Iraq’s interest to increase its oil exports to the U.S. to replace Venezuelan supplies. This is because Basra Heavy crude is priced about $4 lower than Basra Medium, and Iraq would also bear transportation and insurance costs of about $3.5 per barrel for shipments to the U.S.
Additionally, Iraq is bound by a production quota, making it more economically viable to export its oil to Asia, where it avoids those extra costs and benefits from higher prices for Basra crude.
Despite a global rise in oil prices, both Basra Heavy and Basra Medium crude prices fell on Thursday. Basra Heavy dropped by 50 cents (0.88%) to $56.42 per barrel, while Basra Medium also declined by 50 cents (0.84%) to $58.97 per barrel.