The Trump administration is considering imposing sanctions on Venezuela’s oil industry after Sunday’s election, which granted President Nicolas Maduro’s ruling party with virtually unlimited power.
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The new sanctions could come as early as Monday and will most likely include banning Venezuela from importing U.S. oil.
“We are watching a potential revolution unfold,” said Wall Street Journal global economics editor Jon Hilsenrath on FOX Business. “The big question for America…how is the government going to manage that? There’s blood on the streets.”
Venezuela’s oil industry has been on the decline for years, beginning with the reign of former President Hugo Chavez. In Hilsrenrath’s opinion, the new sanctions could have an impact on the price of crude oil and the U.S. economy.
“When oil prices are rising it leads to more investment in the United States, to more fracking,” he said. “So in a perverse way what’s going on there could be helping the U.S. economy by holding up oil prices and giving our drillers an incentive to tap our own wells again.”