Washington Walks Back ‘Run Venezuela’ Rhetoric as Oil Blockade, Military Pressure Signal Deeper Market Reset

The United States is attempting to regain narrative control after a dramatic weekend that reshaped Venezuela’s political leadership and injected fresh volatility into global energy markets, with senior officials now softening the tone of President Donald Trump’s declaration that Washington would “run” the South American country.

U.S. Secretary of State Marco Rubio on Sunday sought to reframe the administration’s intentions following the capture of Venezuelan President Nicolas Maduro by U.S. forces and his transfer to New York to face drug trafficking charges. While Rubio did not dispute the scale of U.S. intervention, his remarks suggested a strategy anchored more in economic coercion and geopolitical leverage than in direct governance.

Speaking on ABC’s This Week, Rubio said the United States would not directly administer Venezuela, instead relying on what he described as an intensifying oil “quarantine” and a sustained regional military buildup to force political and structural change. The distinction matters, particularly after Trump’s blunt comments a day earlier that the U.S. would “run the country until such time as we can do a safe, proper and judicious transition.”

Those remarks immediately triggered alarm across Washington, reviving memories of prolonged U.S. interventions that became costly both politically and financially. Senate Democratic Leader Chuck Schumer warned that regime change and nation-building efforts have historically exacted a heavy toll on Americans, a view echoed privately by some U.S. allies uneasy about the scope of Washington’s ambitions.

Rubio’s language appeared designed to calm those fears without retreating from the substance of U.S. policy. He emphasized that Venezuela’s economy would remain effectively frozen until conditions acceptable to Washington are met, arguing that oil remains the central pressure point. The United States has already seized tankers linked to Venezuelan crude exports and expanded naval and air deployments across the Caribbean, moves that signal readiness to enforce the blockade aggressively.

At the center of the strategy is Venezuela’s oil sector, long crippled by underinvestment, sanctions, and mismanagement, yet still sitting atop the largest proven crude reserves in the world. Trump’s remarks on Saturday made clear that energy is not peripheral to U.S. thinking. He said American oil majors would be invited to invest billions of dollars to rehabilitate Venezuela’s “badly broken” oil infrastructure, a statement that immediately raised questions about whether Washington’s intervention was drifting toward economic reengineering.

Rubio attempted to draw a line between pressure and control. He said the U.S. objective was not to seize oil fields, but to prevent sanctioned oil from entering global markets until Venezuela’s energy governance is overhauled. He also argued that private investment, particularly from Western firms, would ultimately benefit Venezuelans by restoring capacity and efficiency, distancing the sector from actors aligned with Iran or other U.S. adversaries.

Even so, the administration’s own comments underline how deeply oil considerations are woven into the political strategy. Rubio said Interior Secretary Doug Burgum and Energy Secretary Chris Wright would begin assessing Venezuela’s energy landscape and engaging with potential investors. While he noted that Chevron remains the only U.S. company currently operating in the country under limited authorization, he expressed confidence that Western firms would show strong interest once conditions shift.

The implications are widening for global oil markets. Traders and analysts say the tightening U.S. oil quarantine could remove Venezuelan barrels more decisively from circulation at a time when supply-demand balances are already fragile. Heavy crude grades, in particular, are expected to feel the impact, forcing refiners in the Americas to adjust feedstock strategies. Market participants say the unfolding situation could reset pricing assumptions in the coming days as uncertainty over Venezuelan output, exports, and future ownership structures grows.

The political fallout inside Venezuela is equally profound. Following Maduro’s capture, Vice President Delcy Rodríguez was sworn in as president, creating a transition that remains contested and highly sensitive. Maduro and his wife, Cilia Flores, arrived in New York on Saturday night, marking a symbolic and legal turning point that could further polarize Venezuelan society and its regional allies.

Rubio acknowledged that Trump retains the option of further military action, reinforcing the sense that the current phase may be only one step in a longer campaign. His comments on NBC’s Meet the Press that the president “retains all his optionality” have added to regional anxiety, particularly in Caribbean states already affected by airspace disruptions linked to U.S. strikes. Airlines have scrambled to add flights after closures stranded tens of thousands of passengers, illustrating how quickly the crisis has spilled beyond diplomacy and energy into civilian life.

The administration now faces a delicate balancing act. It must reassure domestic and international audiences that it is not embarking on open-ended nation-building, while simultaneously applying enough pressure to reshape Venezuela’s political and economic systems. Rubio’s careful recalibration suggests recognition that Trump’s rhetoric, while forceful, may have overshot what allies and markets are prepared to absorb.

What remains clear is that the convergence of regime change, oil sanctions, and military signaling has pushed Venezuela back to the center of global geopolitics.